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Friday, April 19, 2024
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HomeCOMMUNITY BULLETINCeneco explains difference in power rates with PCPC power contracts

Ceneco explains difference in power rates with PCPC power contracts

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BACOLOD CITY, Negros Occidental, Philippines — The Central Negros Electric Cooperative explained the different rates of the two separate contracts from the same power corporation, Palm Concepcion Power Corporation.

This was after Bacolod Mayor Alfredo Abelardo Benitez asked to be clarified why two contacts from the same power corporation have two different rates.

Ceneco Acting General Manager Vic Alvaro, in a letter to the mayor, said the two rates — P14.7 per kilowatt-hour for the first contract, and P10.2 per kilowatt-hour for the second contract — cover different periods, and subsidies.

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The first contract, involving a 35MW power supply, is good for 10 years starting 27 December 2017. It also covers the payment for the Capital Recovery Fee or the cost of construction and other capital outlay of the new power plant.

The first contract, which is bilateral, also considered the long-term maintenance, and operation of the power plant and the supply of coal fuel.

The second contract was for the one-year emergency Power Supply Agreement which started July 2022.

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This involves a 20MW power supply and has minimal provision for power recovery. The contract is also for a short-term engagement.

Alvaro also said they are negotiating with PCPC to reduce the generation costs for both contracts.

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Hannah A. Papasin
Hannah A. Papasinhttp://facebook.com/hannah.mariveles
Writer. Critic. Professor. She started writing since primary school and now has two published textbooks on communication. A film buff, she's a Communication, Media Literacy and Journalism Professor of the University of St. La Salle-Bacolod, and has a Master's Degree in English.
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