CANE POINTS: Why is MORE/Ignite-Ceneco Joint Venture Gaining Support?

YESTERDAY, Tuesday (May 9), MORE Power/Ignite President/CEO Roel Z. Castro presented to Negros Occidental officials the power distributor’s company profile and accomplishments in its franchise area covering the entire Iloilo City. He also discussed MORE’s proposed joint venture with Ceneco.

Ceneco is the exclusive power distributor for the cities of Bacolod, Silay, Talisay and Bago, and the towns of Murcia and Don Salvador Benedicto. Since its incorporation in 1975, Ceneco has energized all the 158 barangays and more than 240,000 household connections, representing more than 90% of its potential consumers, in its coverage area.

Gov. Bong Lacson, Vice-Gov. Jeffrey Ferrer, SP Committee on Energy Chair Manman Ko and other provincial board members, as well as mayors and representatives of LGUs within Ceneco’s coverage area, witnessed MORE Power’s presentation.

The governor stated that he is personally in favor of the proposed JV, while the vice-governor also intimated that he would most likely support the proposal, as long as it is beneficial to the consumers.

In media statements made last month, Bacolod City officials led Mayor Albee Benitez said that they are either open to or conditionally supportive of the proposed JV, provided that it will lead to lower power cost, minimize power interruptions, improve consumer services and utilize a larger volume of renewable energy.

Wennie Sancho, secretary general of the General Alliance of Workers Association (GAWA), and 20 labor leaders affiliated with GAWA categorically endorsed the proposed JV during their Labor Day presscon at the Negros Press Club last May 1.

Understandably, Ceneco employees are up in arms against the proposed JV, while other militant labor groups also oppose the proposal.

Oppositors of the JV can’t seem to get the sympathy of the long-suffering Ceneco consumers, while public officials and civic leaders, all avowed pro-consumer advocates, are either openly or conditionally supportive of the JV.

Why is this so?

Ceneco was incorporated in 1975 under the ambit of Presidential Decree No. 269 signed into law by Pres. Ferdinand E. Marcos on March 6, 1973. PD 269 mandated the creation of electric cooperatives (ECs) and the implementation of the rural electrification program under the area coverage basis.

An EC is mandated to energize all towns, barangays, sitios and households within its coverage or franchise area. After almost 50 years of implementation, ECs have energized 100% of all the towns and cities, as well as 99% of all barangays in the country, while only 8% (a little over 1 million) potential consumers remain without electric service.

With this impressive accomplishment of their mandate under PD 269 in providing electric service and spurring economic development in the countryside, why is it that ECs still suffer a negative image in the eyes of consumers?

Is it because of high power rates? While generation and transmission charges are beyond an EC’s control, the ECs can’t get that message across to most consumers. Consumers view the ECs as not doing enough to mitigate the impact of these high charges, compounded by the perceived lack of transparency in the ECs’ power contracting.

The high, bordering on lavish and extravagant, salaries and perks of EC employees and officials contribute largely to the consumers’ ill-will towards the ECs. The sometimes rude and arrogant treatment of consumers, and the often delayed, inefficient or indifferent service to consumer concerns, antagonize the consumers, who feel betrayed by EC personnel who are enjoying their salaries and perks from consumers’ money.

That’s how most consumers perceive the ECs. That’s why support for the MORE-Ceneco proposed joint venture is gaining ground by the day.

Consumers don’t mind paying relatively high rates, as long as they get prompt, courteous and satisfactory service.

Consumers are fed up with the present state of affairs under Ceneco. In their minds, any improvement in Ceneco’s services by whatever means necessary, be it a JV with MORE Power or any other entity, is more preferable than maintaining the sickening status quo.* (Butch Bacaoco)