The House of Representatives Committee on Energy, under its chairman Deputy Majority Leader and Pampanga Rep. Juan Miguel Macapagal Arroyo, has recommended sanctions against an electric cooperative for violation of a law during its inquiry on the increase in electricity rates of electric cooperatives in Negros and Iloilo provinces on Friday, Oct, 29.
Negros Occidental 3rd District Rep. Jose Francisco "Kiko" Benitez, Negros Occidental 6th District Rep. Genaro Alvarez, Jr., Iloilo 3rd District Rep. Lorenz Defensor, Iloilo 2nd District Rep. Michael Gorriceta, and Iloilo City Rep. Julienne "Jam" Baronda submitted House Resolution No. 2206 which called for an investigation on the electricity rate hike made by electric cooperatives in Negros and Iloilo.
Paduano, in his interpellation, inquired anew on the contract extension made by Central Negros Electric Cooperative (CENECO) who according to the partylist congressman violated provisions of energy laws. He also requested the House panel to subpoena Central Negros Electric Cooperative (CENECO) General Manager Danny Pondevilla for not attending the hearing.
CENECO board director Rev. Ernie Larida answered Paduano's inquiry and he confirmed the letter from the Energy Regulatory Commission (ERC) regarding its contract extension. Larida added that the CENECO board favored the extension saying its rate was 'low price'.
Paduano, however, said that CENECO's contract extension was invalid saying that ERC did not give its approval and it did not go through the right process.
ERC Chairperson Agnes Devanadera clarified that there is no 'automatic renewal' of a power supply agreement (PSA) extension and she confirmed that ERC has not approved CENECO's PSA extension for its failure to comply with the competitive selection process. Devanadera added that ERC will investigate the said matter and administrative sanctions will be imposed.
Devanadera also said that ERC will require CENECO to give their explanation regarding the said issue within 15 to 30 days. She added that CENECO will need to refund consumers for its excess charges.
Vergara, meanwhile, in her manifestation asked whether penalties will be imposed on those responsible for the damaged submarine cables.