The application of the Korea Electric Power Corp.-Salcon Power Corp before the Energy Regulatory Commission for the amendment of its power sales contract with the Central Negros Electric Cooperative met opposition during a public hearing at the CENECO office yesterday.

On February 17, KEPCO-SPC and CENECO filed the application for the amendment of the contract with the ERC with a motion for the issuance of provisional authority.

CENECO and KEPCO-SPC entered into a power sales contract on July 16, 2007 and the ERC approved it on Dec. 16, 2008 with the rate of P4.2511 for every Kilo Watt hour.

CENECO and KEPCO-SPC entered into a supplemental agreement on their current contract for additional capacity with an option to treat the additional quantity as intermediate power supply on July 2011.

Vicente Petierre III, who represented the Bacolod City government, said CENECO should lead in the opposition to the amendment of their contract with KEPCO-SPC, instead the electric firm was its co-applicant when the proposed amendment was submitted to ERC.

Petierre said the city council through Committee on Energy chairman, Alex Paglumutan, may file a resolution formally opposing the amendment as it will entail an additional cost in electric bills.

He also urged the other local government units under the service area of CENECO to oppose, not only the application of the electric firm and KEPCO-SPC for contract amendment, but also any attempt to file an application for unreasonable power increases.

Aside from Bacolod, CENECO is also servicing electric consumers from the cities of Bago, Talisay and Silay and the towns of Murcia and Don Salvador Benedicto.

Makabayan Regional Coordinator Alejandro Deoma recalled that during a consultation on the proposed contract amendment of CENECO and KEPCO-SALCON in September last year, those who attended it had unanimously opposed the move.

Deoma said they are one with the call of the Bacolod City government in opposing the amendments of the power sales contract.

At the hearing yesterday, Leomel Tambanillo, assistant marketing manager of KEPCO-SPC, said that there is a need to revise the contract with CENECO because they have contracted a new Indonesian firm to deliver coal to their plants.

Tambanillo said their contract with their previous supplier, also an Indonesian firm, was terminated as they did not comply with the new order of the Minister of Energy and Mineral Resources of Indonesia.

He said their new contract for the coal delivery will mean that the amount they pay for the fuel base and transport price will increase from US$ 52.57 for every metric ton of the fuel base and transport price to US$ 63.52.

ERC hearing officer Rhett Roswell Mislang asked Tambanillo if KEPCO-SPC also tried to look for other coal suppliers aside from the Indonesian firm with which they have a contract.

Tambanillo said they looked for other suppliers but the one they found in China is no longer supplying coal abroad, while a firm from Australia is offering to deliver coal at a higher price.

He said if ERC refuses their application it may lead to the shutting down of KEPCO-SPC's power plants and the withdrawal of their investments in the Philippines.*APN

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