Labor Forum: Power Watch Position Paper

Re: P232M ERC Decision Dated June 27, 2017 (ERC Case No. 2013-141RC)Contact Person: Wennie G. Sancho – Secretary General (PWNA)

The burning issue of the P232 M as payment to be collected by CENECO from the member-consumers continue to rage. The public indignation against the implementation of this ERC Order culminated into a unified opposition. The motion for reconsideration filed by the Social Action Center, the Resolutions issued by the members of the CENECO Board of Directors, the manifestations of other advocacy groups and individuals resulted to the holding in abeyance in the implementation of the said Order.

This temporary respite or relief should encourage us to solidify our ranks and strengthen our opposition against the payment of the P232M for the unutilized and excessive power supply contracted by CENECO from KEPCO-Salcon.

We do not know how long it will take ERC to resolve this issue, even as we call for a congressional inquiry in aid of legislation to be held here in Bacolod City to put a stop to the continuing financial burden from being unreasonably passed unto the unsuspecting CENECO member consumers.

To reiterate, Power Watch Negros Advocates Inc., (PWNA) declare the following manifestation:

That the order issued by ERC granting the authority for CENECO and KEPCO-Salcon to collect the amount of P232M as unnominated contract quantities is unconscionable because it is payment for power supply which was not delivered by KEPCO and unaccepted by CENECO but charged to the member-consumers.

That the P232M ERC Order is anomalous because it is an effect of CENECO’s overcontracting with KEPCO for a 24MW with take or pay provision which is grossly disadvantageous to the consumers.

That Power Watch Negros Advocates is seeking the assistance of the Office of the President and Department of Energy (DOE) to hold in abeyance the questionable order of ERC to grant the P232M claim of KEPCO for billing differential. The act of ERC is prejudicial to the CENECO member-consumers. At the same time we are requesting for an indepth investigation in CENECO on the issue of power supply overcontracting.

That the Power Supply Contract between KEPCO-SALCON and CENECO including the Supplemental Agreement which were the basis of the ERC order, should be declared null and void from the very beginning because it contains onerous provision under the failure to off take power provision. It would seem to appear that these is a pattern of abusive and corrupt behavior of overcontracting allegedly perpetuated by some members of the CENECO-BOD.

That it must be emphasized that the CENECO members of the Board who recommended the ill-advised agreement between KEPCO and CENECO should be held, financially responsible and accountable in approving the Power Sales Contract including the Supplemental Agreement between KEPCO and CENECO that was proven to be grossly disadvantageous to the consumers.

The issue of overcontracting is CENECO is a struggle of all CENECO member-consumers. As a matter of fact it is a struggle of the people against the unjust and oppressive policies of compelling us to pay for the power supply we did not use.

This is a call for solidarity! The issue of overcontracting and the payment of unused and unutilized power contracted cannot be solved by Power Watch Negros Advocates alone. We call on other advocacy groups and the people to stand up and be counted and join us in this struggle.

“Evil triumphs when good men do nothing.”*