Power supplier consultant blasts ‘smear campaign’

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BY MAE SINGUAY
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Tuesday, March 28, 2017
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BACOLOD City – A “smear campaign” was how a consultant for a power supplier described the various issues being leveled against him.

It is “regrettable” that a private individual without government or political affiliation like him is being subjected to such, said David Tan of Central Negros Power Reliability, Inc. (Cenpri), a subsidiary of Energreen Power Development and Management, Inc.

One of the issues involves the power supply contract between Energreen and Central Negros Electric Cooperative (Ceneco).

Tan, a technical consultant for Energreen’s project implementer, was being blamed for the delayed delivery of the contracted power. Energreen was also accused of billing Ceneco for unused power.

Energreen — through a diesel plant in Barangay Calumangan, Bago City, Negros Occidental — shall deliver 18.9 megawatts (MW) of “peak and reserve” for 15 years, based on the deal it struck with Ceneco on Aug. 5, 2013.

Tan said Energreen already explained the causes of the delay: challenges in getting permits, power plant construction and weather, among others.

The power supplier has so far delivered 12.6 MW from three engines. Again, the consultant said Energreen aims to deliver the remaining 6.3 MW this March when the plant’s fourth engine operates.

Tan also elaborated on the issue that Energreen was allegedly billing Ceneco for unused power.

Part of their agreement was for the supplier to provide “power reliability capacity standby,” which means Ceneco shall be charged with the “standby rate” even if it does not use the contracted power, Tan said.

But Ceneco disagreed with this, prompting Energreen to seek intervention from the Energy Regulatory Commission (ERC) by filing a petition for dispute resolution in December 2016, Tan said. The case is pending with the ERC as of press time.

Tan also clarified the allegation that the United States Bankruptcy Court affirmed his intention to defraud creditors when he was president of the export company Edison-Hubbard Corp.

He said he declared business bankruptcy in 2000 after his company failed to collect from major customers in Latin America and the Philippines.

There was an allegation of fraud but what happened was “just commercial and credit failure,” Tan claimed.

Under United States laws, business risks are separate from personal risks, he said. “My personal finances are protected under that system.”

Tan also denied that he failed to fulfill a promise to Oriental Mindoro Electric Cooperative, Inc. to complete the installation, construction and operation of generation facilities.

“What is the relevance of this to Negros? I’m not a government official nor do I have political ambitions,” he said.

Tan believes this issue is being brought up by the Manila Electric Co. (Meralco) because of his pro-consumer campaign, having been a main convener of Matuwid na Singil sa Kuryente (MSK), in 2014.

The MSK was formed by concerned Meralco consumers who “have deep knowledge of the electric power industry privatization and deregulation and the inner workings of the industry,” he said.

Tan said the group seeks to “enlighten the public and policymakers on the specific rules and practices that have been causing abusive power costs.”/PN

 

 

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