Central Negros Electric Cooperative is being asked to explain the legal basis for the 13 centavo per kilowatt hour “add on” charge on top of its present rate it is imposing.

The explanation is being sought by lawyer Jose Max Ortiz, in behalf of his client, Romeo Lavilla, a CENECO consumer-member.

“Our client is of the perception that a clearance should have been first taken from the Energy Regulatory Commission before an additional charge could be implemented because the latest order of the ERC is clear that only P0.83 could be immediately imposed,” Ortiz said.

If there is an “automatic clause adjustment” provision that authorizes the immediate imposition, Ortiz asked Ceneco to furnish them a copy of such ERC order or law that authorized imposition before clearance from ERC.

He also asked for the breakdown of the 13 centavo “add on”.

CENECO manager Enrique Tabino yesterday said that the 13 centavos represents the Value Added Tax and systems loss based on a formula given by the ERC.

Tabino said not a single centavo goes to the coffers of CENECO, the VAT goes to the national government in the form of taxes, and the systems loss fee automatically goes to generation rate payment.*CPG

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