The lock-in period
Published by the Visayan Daily Star Publications, Inc.
|NINFA R. LEONARDIA|
Editor-in-Chief & President
NIDA A. BUENAFE
MAJA P. DELY
ANTONIO L. LEONARDIA|
The intervention of the Sangguniang Panlalawigan of Negros Oriental in the review of the existing contract between the Korean Electric Company and the Negros Oriental Electric Cooperative is timely.
The objection of the Negros Island electric cooperatives to a possible P0.44/kwh increase petition by KEPCO to the Energy Regulatory Commission violates the lock-in period stipulated in the contract.
The lock-in period in five years, which means that fluctuations or increase in peso-dollar rates will not affect the contracted price.
Under the agreement, KEPCO’s power rate should be at P5.62 /kwh within ten years with a lock-in period of five years.
A board member commented that the agreement is oppressive, because the power supply is expensive and it is beyond the contract price.
We believe the Provincial Board is right in reviewing the contract between the two electric cooperatives and KEPCO. After all, we the consumers, have the right to know.
Also, this development affects not only the province of Negros Oriental but also Negros Occidental and all their towns and cities. A hike in power cost, in addition to all other increases in the prices of goods and services, will be unconscionable, to say the least.*