BACOLOD CITY, May 16 (PNA) — The Central Negros Electric Cooperative (CENECO) will start collecting an additional P0.1938 per kilowatt hour (kWh) from its consumers here this month, according to General Manager Sulpicio Lagarde Jr.
This is pursuant to Energy Regulatory Commission’s (ERC) order mandating all electric cooperatives, private utilities and the National Grid Corporation of the Philippines (NGCP) to collect P53.581-billion as portion of the Universal Charge-Stranded Contract Cost (UC-SCC).
Lagarde said in a statement that target amount to be paid to Power Asset Liabilities Management Corporation (PSALM) will be collected progressively from all power consumers nationwide in duration not shorter than 15 years nor longer than 25 years.
It can be recalled that before the advent of Electric Power Industry Reform Act (EPIRA) in 2001, National Power Corporation (NPC), entered into a series of long term Power Supply Agreements (PSA), some are Build Operate Transfer (BOT), to provide for reliable power demand of the country.
Such PSA were overtaken by the implementation of EPIRA and were ceded as Transition Supply Contracts (TSC).
Such TSCs were not able to fully compensate the NPC’s remainder contractual obligations under competitive Spot Market environment, thus, the term Stranded Contract Cost (SCC).
Eventually, after PSALM filed an application for the recovery of said SCC last March 2011 based on ERC Res. 4 series of 2007,”A Resolution adopting the rules for the recovery of NPC Stranded Cost and Stranded Debts Portion of Universal Charge”, as amended by Res. 2 series of 2011 and supported by Section 32 of Republic Act No. 9136, “contracts duly approved by the Energy Regulatory Board (ERB) now ERC shall be entitled for recovery through Universal Charges (UC) – Stranded Contract Cost (SCC)”, ERC finally approved their application for the recovery of P53.581 billion at a rate of P0.19838/kWh through ERC Order No. 2011-091 RC.
CENECO consumers consuming 100 kilowatt per month will have an increase of P19.00 upon the implementation and be reflected at the Universal Charges NPC Stranded Debt. (PNA)