LAST week I mentioned that the Central Negros Electricity Cooperative (Ceneco)’s past propensity, with the support of the Energy Regulatory Commission (ERC), to enter into disadvantageous bilateral contracts with suppliers to purchase electricity has resulted in severe losses for Ceneco’s consumers.
This month, for example, Ceneco is charging its customers P11.1923 per kilowatt hour (kWh). Its neighbor, Noceco (Negros Occidental Electric Cooperative), due to its superior decision-making, is able to provide its customers electricity at a cost of only P8.5426 per kWh. This is P2.65 per kWh cheaper than Ceneco’s price.
An average consumer’s family uses approximately 300kWh per month. This means that the Ceneco consumer pays P3358 in June 2020 whereas his Noceco counterpart only pays P2563 – a saving of P795.
Since Ceneco has 186,000 customers, this means that collectively they are paying P540 million more in June 2020 than they would have done if Ceneco’s electricity acquisition strategy is as effective as Noceco’s.
The P540 million in a month is equivalent to over P6 billion in a year. This is money which mainly has left the local economy. Had Ceneco’s decision-making had been better, this money would have remained here. More economic activity and with the multiplier effect, Bacolodnons would have been significantly better off.
Iloilo denizens are also paying over P10 per kWh. Is it possible for MORE Power to renegotiate electricity supply contracts?
***
In late 2018, Meng Wanzhou, daughter of Huawei’s founder and CEO, Ren, was arrested at Vancouver airport by the Canadian authorities. The arrest was a result of an extradition request by the US who want Meng, Huawei’s Chief Financial Officer, to face fraud charges in relation to doing business with Iran.
Almost immediately, the Chinese detained two Canadians on suspicion of spying.
Canada has been slow to make a decision as to whether Meng should be extradited to the US. She is still out on bail and is reportedly working on a graduate degree.
China has now charged the two Canadians with spying. This is seen by some to put pressure on Canada to drop the US extradition request.
***
Huawei is a major supplier to the Globe/PLDT consortium to upgrade telecommunications facilities in the Philippines. Due to COVID, the Department of Education is thinking about providing on-line education. Money is tight, however, and it is unclear that DepEd will be able to fully implement this possibility. It has occurred to me that given our commitment to Huawei, it might be possible for an approach to be made to this company to help with the challenge of providing universal on-line education to our students.
A possibility?/PN
