Power firm threatens to hike charges in Bacolod

BACOLOD CITY, Philippines - The Central Negros Electric Cooperative Inc. (Ceneco) might be forced to collect more from Bacolod consumers if the city insists on charging close to P200 million in franchise and other business taxes. Ceneco president Roberto Montelibano, however, has supported the move of Bacolod Mayor Evelio Leonardia to give negotiation a chance on the disputed uncollected taxes. Montelibano cited the tax recovery adjustment mechanism in the rates of electric cooperatives, approved by the Energy Regulation Commission (ERC) on January 11, 2006, which sets the guidelines and formula for electric cooperatives to recover the franchise tax imposed by a local government unit (LGU) by charging it back to consumers. "In our case, since Bacolod City is charging close to P200 million per statement of Mayor Leonardia, then all we have to do is send a formal request to ERC to recover said amount from Bacolod consumers," Montelibano stressed. This cost recovery or shifting of tax burden to consumers will (cover) Bacolod consumers only and not the other Ceneco coverage areas like Murcia, Silay, Talisay, Bago and Don Salvador Benedicto. "This is because it is only Bacolod which is charging Ceneco such an exorbitant amount, other coverage areas are not," he added. "In fact, upon my assumption to office, we already paid the City more than P2 million in franchise tax. We are now allowed by law to charge this to Bacolod consumers upon ERC's approval but we withhold this, conscious of our social responsibility but nothing can stop us from seeking ERC approval and charging this (franchise tax) to Bacolod consumers," Montelibano explained. He, meanwhile, refused to comment on Leonardia's earlier statement that there are political maneuverings going on in the Ceneco board. "Suffice for now that we are talking with the city government. There are indeed common points which we do agree and I believe something positive will come out of this," Montelibano said. – Sun.Star Bacolod