The proposed memorandum of agreement between the Central Negros Electric Cooperative with Aboitiz Power Corp. is an admission that Ceneco is inefficient because it needs to “outsource” the expert service of the latter, Power Watch-Negros secretary general Wennie Sancho said, during the launching of the group yesterday.

Sancho said they suspect that this MOA will ultimately lead to privatization and this is what they want to avoid.

The proposed MOA between the two power entities will be signed if the consumers will not register their vehement opposition against the alleged privatization of Ceneco, he said.

Sancho said if Aboitiz Power finds out that Ceneco is viable, the buyout will come sooner or later, and this should be prevented at all cost not only by Power Watch, but by all organized consumer organizations.

Aboitiz Power communications manager, Wilfredo Rodolfo, said the MOA is for technical assistance and cooperation, and the resulting recommendations will be given fully to Ceneco for its use.

This is part of their partnership building activities with partner cooperatives all over the country.

Rodolfo said Aboitiz Power is building a 340-megawatt coal fired power plant in Toledo City, Cebu, that can sell 80 percent of its generation to Ceneco.

Sancho said Power Watch will be closely watching the development of this proposed agreement to defend the interest of the consumers. This is a lopsided MOA for Aboitiz Power to absolve itself from any liability or liabilities that may arise in the future upon the execution of the proposed agreement, he said.

If this agreement will be finally signed, this will become binding to all Ceneco consumers, Sancho said.

“We vehemently oppose this agreement as this will be a sellout of our interest, an abdication of our consumer's rights and Ceneco would be ceded to Aboitiz Power at our own expense. Let us not allow the Board to give Ceneco to Aboitiz Power in a silver platter,” he said.

Sancho said this agreement should be ratified by all Ceneco consumers in a general assembly or a referendum. This issue should be brought to the bar of public opinion because the Board failed to inform the consumers about this crucial agreement that involves their future and that of their children, he said.

Meanwhile, former Ceneco director Roy Cordova said they will ask the National Electrification Administration not to approve the appointment of Chuchie Destriza as permanent general manager of Ceneco since systems loss has continued to increase during her term.

Cordova, a member of the Utilities Consumers Alliance of Negros, said they are asking the Board to declare the position vacant for other applicants.

The Board should not also consider the MOA with Aboitiz Power. It should engage the services of NEA and not a private entity, he said.

Cordova told the Board, led by Ceneco president Arnel Lapore, that if they cannot manage Ceneco, they should resign and give the job to others. He said UCAN can take over and prove it can reduce systems loss since they have members who are professional electrical engineers.

He submitted a proposal on how to reduce systems loss when he was yet a member of the Ceneco Board, Cordova said.

Cordova said if they cannot manage Ceneco, they want NEA to take over its operation.

Lapore said they want to improve Ceneco to a higher level and want to ensure stability. When somebody extends help, it does not mean that Ceneco's situation is already critical.

NEA can only take over the cooperative if it is financially distressed or is beyond repair. But this is not the case of Ceneco because they were able to prevent it, Lapore said. They are bouncing back from that supposed disaster, he said.

Lapore said the request to revoke the appointment of Destriza is very unfair since she has been doing her best. They did not hire an outsider because the best persons who can manage the affairs of Ceneco are the people within, he said.

A NEA takeover is very remote. It only takes over cooperatives that cannot survive, he added.

Lapore said their decisions are subject to the review of NEA and they have to comply with the law being imposed.

They know that whatever decisions they make, there will be oppositions, he said.

There is no hidden agenda when they came up with the draft MOA with Aboitiz Power that is why they asked a technical working group to study it, he said.*CGS

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