‘Ceneco has good financial standing’-A A +A
Monday, June 30, 2014
THE Central Negros Electric Cooperative (Ceneco) is in good financial standing, and has no intention to charge the systems losses to the consumers, its officials said.
The systems losses won't be passed on to the consumers, said its board president Arnel Lapore at Ceneco’s 39th Annual General Membership Assembly at the West Negros University Gymnasium Saturday.
Systems losses refer to power lost either in transmission through power lines or pilferage.
"We are aware that the systems loss is over the cap imposed but we cannot pass it on to the consumers, rather it will be solely absorbed by the cooperative only that it will affect the electric cooperative's operations and power cost," he explained.
Lapore was reacting to a statement issued by outgoing Ceneco director Roy Cordova that if the systems loss is high, it will redound to the high systems loss charge that is part of the rate to be paid by the consumers.
From January to December in 2012, Ceneco’s system’s losses were only P78.4 million while in 2013, it rose to P95.9 million or an increase of 13.57 percent that is beyond the cap set by the National Electrification Administration.
Lapore said that Ceneco is doing its best to arrest the systems loss especially the non-technical ones like the pilferages, over and under load of transformers, and fixing of rotten wire.
Aside from the non-technical losses, another contributory factor to the losses is the energization programs in the sitios under the coverage area of Ceneco even if electricity consumption in these areas are little, he added.
Lapore said they can cut down the systems loss to only 11 to 12 percent in the next six months.
Meanwhile, records show that in 2013, Ceneco posted a P29.3-million net income compared to only P187 million in 2012.
Ceneco general manager Sulpicio Lagarde Jr. said the increase in income can be attributed to the reduction of its expenses and operational cost, increase in the number of consumers, and increase in sales or gross profit.
Gross profit of Ceneco or electricity sales reached P492.3 million last year, from P433.5 million in 2012 or an increase of 13.57 percent, records show.
More power plants needed
Meanwhile, Senator Antonio Trillanes, who was the guest of honor and speaker during Ceneco's 39th AGMA, said the country needs more power plants to address the power supply problem.
One of the solutions to attract more power investors, he said, is to expedite the licensing and clearance requirements for power investors.
At present, at least 160 signatures are required before a power plant could be put up in the country.
"With this looming power crisis where our economy and population is growing, energy demands will be increasing so we need to address them by putting up new power plants," said Trillanes, who sponsored a bill to develop capabilities for renewable sources of energy like solar, wind and hydro power.
Published in the Sun.Star Bacolod newspaper on June 30, 2014.