The Board of Directors of the Central Negros Electric Cooperative and Energreen Power Development and Management Inc. officials will meet on March 11 on the delivery date of contracted power supply of Energreen to Ceneco after the diesel plant failed to meet the February 26 target, Ceneco president Arnel Lapore said yesterday.

Majority of the members of the Ceneco Board approved a resolution extending the delivery date of contracted power supply of Energreen to the power utility firm during a special board meeting Friday.

Lapore said the directors rejected the first recommendation of the technical and legal management of Ceneco that was to rescind the contract for Energreen’s failure to deliver power supply to Ceneco Thursday as provided in the memorandum of agreement between Ceneco and Energreen.

Lapore said those who voted for the extension directors Michael Maravilla, Roberto Montelibano, Joyce Martha Cuenca, Paul Lizares, Vicente Tan and Edward Gasambelo.

He, with Directors Zenaida Lacson and Robert Javellana were in favor of the rescission of the contract, he said.

Lapore said he voted for the rescission of the MOA because of Energreen’s uncertainty in delivering power to Ceneco. They will also meet with Energreen to discuss problems involving transmission lines, he said.

Ceneco entered into a 15-year contract with Energreen on August 5, 2013 for the diesel plant to supply Ceneco 18.9 MW “peak and reserve” power from 2015 to 2029.

Lapore said that according to the presentation made by Energreen, they will be able to deliver power to Ceneco by the third week of April. They were also informed that its plant is about 95 percent completed.

However, Lapore said they will still have to verify the accuracy of the claims of Energreen.

Ernesto Tabao, Energreen legal counsel, cited force majeure as the reason why they were not able to deliver the contracted power supply it is supposed to provide Ceneco Thursday.

He said there were many circumstances beyond their control like port congestion and the unavailability of cement, among others.

Tabao also said that even if they are capacitated to deliver power, Ceneco has not obtained the approval of the National Electrification Administration, that is one of the preconditions to be met.

But Lapore said this was never a ground for them to be excused. The contract is very clear and simple, he said.

The replacement power is an option granted to Ceneco. They have the option whether to accept it or not, depending on the reasonableness of the rate because replacement power is meant to supply the missing requirement, Lapore added.

Vicente Petierre lll, legal counsel of the Utilities Consumer Alliance of Negros, said they will file a manifestation before the Energy Regulatory Commission to ask for copies of the Board resolution and minutes of the Feb. 27 special board meeting of Ceneco so they will know the individual opinions of the directors who voted for the extension of the delivery date.

They will also inform ERC of the stand of the intervenors about the action taken by the six directors. These directors, who are all businessmen, have a lot of explaining to do to the consumers, he said.

UCAN had earlier urged Ceneco to revoke its contract with Energreen for its failure to deliver power to Ceneco by Feb. 26.

UCAN chairman Fr. Ernie Larida said that, according to sources from the Energy Development Corporation, there is sufficient power supply in the Visayas. They are also opposed to the operation of diesel plants because of its effect on the environment, he said.*CGS

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