THE City Government of Bacolod has a cumulative outstanding electricity bills with Central Negros Central Negros Electric Cooperative Inc. (Ceneco) amounting of P271.892 million.
City Legal Officer Joselito Bayatan said Wednesday that last week, they received a letter from Ceneco signed by its general manager Suplicio Lagarde Jr., informing them of the amount Bacolod City owes the electric cooperative.
It stated the cumulative outstanding electricity bills from January 2003 to 2007 totaling P108.873 million; January 2008 to June 2013 - P33.818 million; July 2013 to December 2013 - P31.145 million; residual 2014 - P29. 903 million; residual 2015 - P39.978 million; January to June 2016 - P21.226 million; and July 2016 - P7.007 million.
In the letter, Lagarde also appealed to Mayor Evelio Leonardia to settle the city’s current monthly bills averaging P6.663 million.
He added that they are drawing up a mutually acceptable settlement plan for the city’s past financial obligations.
Bayatan said they are willing to sit down with Ceneco management to settle the city’s account.
He also said they will discuss the recent Supreme Court decision that mandates all electric distribution utilities like Ceneco to pay real property tax (RPT) on poles assessed by the local government units served by its franchise.
“The city is willing to pay, but we will also clarify the franchise bills of Ceneco in the City Government,” Bayatan said.
Ceneco president Arnel Lapore had earlier said the imposition of RPT on electric poles will be passed on to consumers although he said it will have a minimal impact.
The Ceneco management had cited the Supreme Court First Division ruling dated August 5, 2015 in a case between Manila Electric Company (Meralco) and the City Assessor and City Treasurer of Lucena City.
The ruling declares that transformers, electric posts, transmission lines, insulators, and electric meters of Meralco are not exempted from real property tax under the Local Government Code.
Former mayor Monico Puentevella then said the City Government will study the possibility that if ever the city will shoulder the said charges, it can be deducted from the bills of the city with Ceneco.
