The Central Negros Electric Cooperative posted a net loss of P111.489 million in 2008, up by 72 percent from the 2007 figure of P64.748 million due to decrease in sales and increase in depreciation and transmission and distribution expenses, its statements of operations show.

Energy sales was only P2.332 billion as of end-December 2008 while in the previous year it was P2.387 billion.

Depreciation increased to P124.227 million in 2008, from P116.789 million last year.

Depreciation refers to non-cash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence.

According to a note in CENECO’s financial statements, it is computed based on the carrying values of the property using the straight-line method over the estimated lives of the properties.

Expenses for transmission and distribution rose from P86.98 million in 2007 to P102.913 million in 2008. These include overhead lines, consumer installation, meter expenses, supervision and engineering, line transformers, station expenses, street light and signal system, and miscellaneous expenses.

On the other hand, CENECO’s year-end cash balance in 2008 increased by P65.4 million, according to the report of board treasurer Roberto Montelibano.

Major cash outflow was invested in additional utility plant, amounting to P115.6 million, the report added.

Energy revenue in 2008 decreased by 2.3 percent compared to 2007 while cost of power also dropped by 1.25 percent.

“As a result, there is slight change in (CENECO’s) gross profit,” Montelibano said in his report.

Highest energy sales come from residential consumers at 47 percent; 24 percent, public buildings, streets, and highways; and 9 percent, commercial and industrial users.

CENECO power purchase in 2008 reached about 570.696 million kilowatt hours, according to the report.

The average power cost per kWh, net of three percent power purchased discount is P4 while average billing rate per kWh was P5, both are consistent with the 2007 rates.

Montelibano also reported that total consumer-members increased to 128,637 in 2008, from only 125,994 in 2007.

CENECO manpower decreased to 355 last year from 359 in 2007. In 2008, it had 1:362 personnel-consumer ratio, from 1:351 the previous year.*NLG

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