The Central Negros Electric Cooperative has issued a demand letter asking the Bacolod City government to settle its outstanding account of P61,415,686.26.

The letter of CENECO general manager Sulpicio Lagarde Jr. addressed to Mayor Monico Puentevella and the Sangguniang Panlungsod, was included in the SP agenda Monday.

In an interview over ABS CBN, Vice Mayor Greg Gasataya said yesterday that they have not yet received an official endorsement from the Mayor.

When it is forwarded to the SP, they will look for funds to pay their obligation with CENECO, he said.

Gasataya said that, by the first quarter of next year, there will be savings and surplus from the general fund which they can utilize.

The last payment made by the city as of Dec. 16 was about P91,000, he said.

A big portion of the city's P61.4 million outstanding account covers April to October 2013 totaling about P40 million.

Its account covering July to Nov. 2011 totaled P69 million, and from Sept. to Nov. 2012 - P15.4 million.

The city's account with CENECO includes accounts of previous administrations from 2002 and earlier.

CENECO TAXES DUE CITY

Meanwhile, the Leonardia administration had issued a press statement before the end of its term, stating that out of the total account of P167,169,086.98, its account is only P118,709,660.13 covering 2004 to January to June 2007. The rest were incurred by previous administrations, records show.

           The amount was not paid because the city wants CENECO to pay the city its franchise tax liabilities covering 1997 to 2006 and 2008 of P184,483,373.88.

            Whether the assessment will be based on “gross receipts” or on “distribution charges” of CENECO, is still subject to debate, it said.

COMPROMISE

In a compromise agreement entered into between CENECO and the previous administration, 50 percent of the payments by the city will be utilized by CENECO for the electrification of areas in Bacolod City to be identified by the City Mayor.*CGS

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