Labor Forum

October 18, 2017

President Rodrigo Roa Duterte
Republic of the Philippines
Malacañang Palace

Attn: Jaime Llaguno Mabilin
Director IV
Presidential Action Center

Dear President Duterte:

Greetings from Power Watch Negros Advocates!

This is with reference to our letter received by your office on August 30, 2016 requesting an investigation on the alleged power supply over-contracting of the Central Negros Electric Cooperative (CENECO) in Bacolod City. Our letter was referred to Secretary Alfonso G. Cusi of the Department of Energy (DOE), by Jaime Llaguno Mabilin, Director IV of the Presidential Action Center.

On September 30, 2016 we received a letter from Mylene C. Capongcol, Director of Electric Power Industry Management Bureau of the Department of Energy informing us that our concern was referred to the National Electrification Administration (NEA) with a suggestion that we can file an administrative case with NEA Administrative Committee thru Chairman Atty. Vic P. Alvaro on our allegations on Power supply over contracting by CENECO.

What we need is an investigation by NEA on this issue, being based in Bacolod City we do not have the luxury of time and the expenses to file a case, hence our request for an investigation on this issue.

On September 27, 2017 the Energy Regulatory Commission (ERC), issued an order granting the authority for KEPCO-Salcon Power Corporation (KSPC) and CENECO to collect from the CENECO member-consumers the amount of P232 Million as “unnominated contract quantities.” The payment will be staggered in 50 months causing a rate increase of about P0.6 to 0.8 centavos per kilowatt hour effective October 25, 2017.

The P232 Million “unnominated contract quanties represent the amount to be paid by the consumers for unutilized and excess power supply. In other words, the consumers are being compelled to pay for the power supply that we did not use. This is grossly disadvantageous to the consumers who are already reeling from the high cost of electric bills every month. The ERC order on the P232 M is unjust and oppressive to the welfare of the member consumers of CENECO.

We appeal to your office Mr. President Sir, for assistance and intervention on this issue of power supply overcontracting in Central Negros Electric Cooperative (CENECO) to prevent the continuing financial burden of P232 million from being unreasonably passed unto the unsuspecting CENECO consumers.

We appeal that the implementation of the ERC Order dated June 27, 2017 be held in abeyance and an indepth investigation be conducted in CENECO. The member consumers must not be made to pay for the wrong decision of the CENECO Board of Director who had caused the approval of this power supply contract.

We appeal that the responsible persons who had caused this over contracting be punished, particularly the members of the CENECO Board of Directors, who should be held accountable and financially responsible for hastily approving this EPPA between CENECO and KEPCO-Salcon (KSPC) in gross disregard of their sworn duty to protect the welfare of the consumers. The CENECO Board of Directors should be held liable for irresponsible and abusive contracting to the detriment of the consumers.

We are compelled to appeal to your office as the last recourse so that the voice of the CENECO consumers will be heard to immediately put a stop to the continuing financial burden injustly charged to the CENECO member-consumers.

Thank you very much and more power.

Sincerely yours,

Secretary General