Hearing up for Ceneco power contract

BY MAE SINGUAY

BACOLOD City – A public hearing on the power purchase contract between Central Negros Electric Cooperative (Ceneco) and power producer Energreen Power Development and Management Inc. is being pushed.

“Consumers must be aware of the transaction (and its effects),” said Councilor Alex Paglumotan, chairman of the Sangguniang Panlungsod’s committee on energy.

He is wary of Energreen’s selling price to Ceneco – from P12.44 to P12.50 per kilowatt hour – and the effects to health and environment of the energy producer’s power plant.

A lawyer who asked for anonymity said the selling price of Energreen is “very disadvantageous” to consumers.

Other power producers – Kepco, Palinpinon geothermal power plant and Power Sector Asset and Liabilities Management Corp. – sell to Ceneco at only P5 per kilowatt hour, said the lawyer.

Ceneco also gets power from the Wholesale Electricity Spot Market.

“Energreen’s plant is located in Negros Occidental, thus we expect its power to cost less compared to those of other power producers,” the lawyer said.

According to Ceneco general manager Sulpicio Lagarde Jr., on peaks hours they need 120 megawatts.

What Ceneco currently gets from its power providers – a combined 105 megawatts – is not enough

Energreen is constructing a diesel power plant in Barangay Calumangan, Bago City. It aims to produce 18.9 megawatts of power for Ceneco.

It will start operating this December.

Ceneco’s coverage area includes the cities of Bacolod, Talisay, Silay and Bago, and the town of Murcia.

Paglumotan said the Energy Regulatory Commission’s (ERC) approval is also needed for the 15-year contract that starts this December.

Paglumotan is enlisting the support of the Consumers Watch for the public hearing.

He also expects the ERC to conduct a separate hearing on the Ceneco-Energreen power purchase contract./PN