The Social Action Center and Freedom from Debt Coalition raised environmental and health concerns on the operation of Energreen Power Development and Management Inc., during a committee hearing conducted by the Sangguniang Panlungsod Committee on Energy and Communication in Bacolod City Monday.

Central Negros Electric Cooperative has entered into a 15-year contract with Enegreen, a diesel power plant, to address the power deficiency and improve power reliability in its franchise area.

Energreen will supply “peak and reserve” power supply from 2015 to 2029 to CENECO, whose distribution system has been suffering from power interruptions and supply shortage from the Negros Grid, which is part of the Cebu-Panay-Negros Visayan Grid.

Bacolod Councilor Alex Paglumotan, chairman of the Committee on Energy and Communications, said the FDC believes that bunker fuel is not environmental-friendly and is hazardous to one’s health and will submit its position paper.

FDC secretary general Pricilla Goco asked why CENECO is entering into a 15-year contract with Energreen when there are other sources.

Fr. Ernie Larida, Social Action Center director, also requested for a copy of Energreen’s Environmental Compliance Certificate.

The SAC will conduct research and investigation and will also submit its position paper to the committee, Paglumotan said.

Bayan Muna represented by Alejandro Deoma asked why an ECC was granted before the plant of Energreen was constructed.

Paglumotan said Energreen had applied for a biomass plant in the original application. In the amended contract, the applicants prayed that they be granted provisional authority.

SP Secretary Vicente Petierre said that once this is granted provisional authoroity, the applicants can start collecting from the consumers and Energreen will use the provisional authority to get the proceeds to add to the capitalization of their loans.

Paglumotan said CENECO was asked why they are buying power from Energreen when it has a contract with PSALM at P6 per kilowatt hour, while Energreen costs is P12.44 pwh.

CENECO general manager Sulpicio Lagarde Jr. said PSALM will no longer renew its contract with CENECO after Dec. 25.

Lagarde said they will only buy power from Energreen during peak hours, from10 a.m. to 1 p.m. and from 2 p.m. to 10 p.m.

Paglumotan said if ERC approves their application, Energreen will start to deliver power to CENECO in November, although the plant construction is still ongoing.

He said Petierre asked about the status of their machine and was told that it is arriving.

Former CENECO director Roy Cordova said that if ERC will not approve its application, the time of use rate will be applied.

Leomel Tambanillo of CENECO said that without the approval of ERC, they cannot pass on any rate to the consumers.

Hermilo Pauyon of the City Legal Office, asked for a copy of the contract of CENECO and Energreen.

George Zulueta of the Metro Bacolod Chamber of Commerce and Industry, said they are tasked to invite investors to Bacolod and one of the criteria is that there should be a reliable, stable source of energy that is environmental friendly, and at a reasonable price.

Lagarde said they can assure the business sector that they can supply the power requirement triggered by the expansion of SM, 888, and Ayala.

Paglumotan said he will wait for the transcript of records of the hearing and will confer with Councilor Archie Baribar, vice chairman of the Committee on Energy, and the SP Secretary regarding the recommendation they will make, and if they will hold another public hearing or issue a certification which is one of the requirements of ERC to approve the application.

He said they will also represent the city as intervenors before the Energy Regulatory Commission.*CGS

back to top