Gatchalian urges DOE, ERC to probe joint venture woes to solve power outages in CENECO areas

Senator Win Gatchalian urged the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to conduct an independent investigation over the validity of a joint-venture company operating in Negros Island.

The vice-chair of the Senate Committee on Energy, Gatchalian specifically wants the DOE and ERC to ascertain the validity of a plebiscite conducted to ratify the joint venture agreement (JVA) between Central Negros Electric Cooperative (CENECO) and Primelectric Holdings Inc./ Negros Electric and Power Corp. (NEPC).

The said venture committed to invest up to P2.1 billion over the next 5 years to rehabilitate and modernize the distribution system which is crucial to having a steady and affordable supply of electricity for the consumers on the island. The company also committed to invest P200 million for its sitio electrification program. CENECO's coverage area includes the cities of Bacolod, Bago, Silay, and Talisay; and the towns of Don Salvador Benedicto and Murcia.

"Frequent power outages have been a recurring issue in Bacolod and Negros inconveniencing residents and businesses," stressed Gatchalian, noting that CENECO has been breaching the benchmark of 8.2% for system loss, posting a system loss of 11-12% prior to the execution of the JVA. The senator said this only indicates the need for additional capital expenditure to improve efficiency.

Some consumer groups claim the plebiscite, which was conducted from June to August last year, lacked the necessary legal validity because it wasn't duly approved during a CENECO general assembly as provided by the cooperative's by-laws. These consumer groups also claim they have filed several petitions before the ERC which the agency has not acted on.

"The ERC should provide the reasons for its inaction and should address the allegations of irregularities in the conduct of the plebiscite," said Gatchalian, adding that the DOE is well-placed to conduct an independent inquiry and fact-finding on the issue as the chairman of the National Electrification Administration (NEA) board.

"Conduct an independent inquiry on the plebiscite for the JVA, and investigate everything related to this agreement," Gatchalian told representatives of the DOE and ERC during a recent hearing conducted by the Senate Committee on Public Services on the franchise application of NEPC.

Gatchalian hinikayat ang DOE, ERC na imbestigahan ang isyu sa joint venture para malutas ang palagiang brownout sa mga lugar na sakop ng CENECO

Hinimok ni Senador Win Gatchalian ang Department of Energy (DOE) at ang Energy Regulatory Commission (ERC) na magsagawa ng independent investigation sa validity ng joint-venture company na nag-ooperate sa Negros Island.

Partikular na nais ni Gatchalian, vice-chair ng Senate Committee on Energy, na tiyakin ng DOE at ERC ang bisa ng plebisito na isinagawa upang pagtibayin ang joint venture agreement (JVA) sa pagitan ng Central Negros Electric Cooperative (CENECO) at Primelectric Holdings Inc./ Negros Electric and Power Corp. (NEPC).

Ang nasabing kasunduan ay nangakong mamuhunan ng hanggang P2.1 bilyon sa susunod na limang taon para i-rehabilitate at gawing moderno ang distribution system na mahalaga sa pagkakaroon ng matatag at abot-kayang suplay ng kuryente para sa mga konsyumer ng buong isla. Nangako rin ang kumpanya na mamuhunan ng P200 milyon para sa sitio electrification program nito. Saklaw ng CENECO ang mga lungsod ng Bacolod, Bago, Silay, at Talisay; at ang mga bayan ng Don Salvador Benedicto at Murcia.

"Ang madalas na brownout ay paulit-ulit nang isyu sa Bacolod at Negros na nakakaabala sa mga residente at negosyo," sabi ni Gatchalian. Aniya, ang CENECO ay lumalabag sa benchmark na 8.2% para sa system loss at nakapagtala ng system loss na 11-12% bago ang pagpapatupad ng joint venture agreement. Ayon sa senador, nagpapahiwatig lamang ito ng pangangailangan para sa karagdagang kapital upang ayusin ang operasyon.

Sinasabi ng ilang consumer group na ang plebisito, na isinagawa mula Hunyo hanggang Agosto noong nakaraang taon, ay walang ligal na bisa dahil hindi ito inaprubahan sa panahon ng CENECO general assembly na nakasaad sa by-laws ng kooperatiba. Sinasabi rin ng mga consumer group na ito na nagsampa sila ng ilang petisyon sa ERC na hindi naaksyunan ng ahensya.

"Kailangan nating malaman kung bakit hindi agad inaksyunan ng ERC ang petisyon ng mga consumer group upang matugunan na ang alegasyon ng mga iregularidad sa pagsasagawa ng plebisito," giit ni Gatchalian.

"Ang DOE ay may kakayahang magsagawa ng isang independiyenteng imbestigasyon at fact-finding sa isyu bilang ito naman ang chairman ng National Electrification Administration (NEA) board," dagdag niya.

"Kailangan na ng isang independent na imbestigasyon hinggil sa naganap na plebisito para sa joint venture agreement, at imbestigahan ang lahat ng may kinalaman sa kasunduang ito," sabi ni Gatchalian sa mga kinatawan ng DOE at ERC sa katatapos na pagdinig na isinagawa ng Senate Committee on Public Services sa franchise application ng NEPC.