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Official Publication of the Philippine Information Agency Bicol Regional Office, in cooperation with the RIAC-REDIRAS - RDC Bicol



Wednesday, July 31, 2013

Local officials, united in a move to restore power supply in Albay

By Marlon A. Loterte and Sally A. Atento

LEGAZPI CITY, July 31 (PIA) -- Albay Gov. Joey S. Salceda said he has since been working hard and pleading with energy authorities and corporate boards to secure an "immediate selective reconnection" for Albay’s electric power supply that for long was in the balance due to the financial accountability of service provider Albay Electric Cooperative or Aleco.

Commenting on the province wide power black out since Tuesday noon, Salceda noted that cutting off the power supply of the province has disruptive economic impact and has somehow tarnished Albay’s image to its national and global constituencies.

Albay remains without power more than 24 hours now following disconnection carried out by the National Grid Corporation of the Philippines (NGCP) when Aleco failed to pay its current bill payment balance of P56 million to the Philippine Electricity Market Corporation (PEMC). By

“By "Selective," 100 heavy loads will no longer be serviced. While “Immediate” means reconnection must be madedas early as two days' but 'no more than one week' because the poor who share no blame are made to pay for the sins of the oppressive rich who pursue only profit at the expense of the ordinary working families," Saceda explained.

Salceda noted that the present sorry state of the province could be much worse if this incident would not result to long-term reforms to secure the power services in Albay. He added that this must not recur anymore and for Aleco to become a positive force in Albay'sdevelopment.

As the crisis stays, Salceda called on all Albayano, “Please pray for me so the Holy Spirit can guide me in discerning what is best for our people. I cannot do it alone."

Salceda furthered, “This is a disconnection which we were able to hold at bay for 15 years with state-owned National Power Corporation (Napocor) and three years with private PEMC. I did my best.”

"Energy Secretary Petilla DOE was already very generous and kind in agreeing to our position during protracted meetings in July 2, 8 and 9 this year that collections on the P1 billion PEMC and P3 billion PSALM (Power Sector Assets and Liabilities Management) be deferred," he added.

After seven days of failed negotiations, the debt-ridden Aleco has finally downed by a crippling P4-billion total debts plus P67 million in current electric bills.

Aleco is servicing at least 160,000 households, known as the third biggest cooperatives and among the 10 worst with the highest systems losses at 24 percent.

The National Electrification Administration (NEA), which has controlled Aleco since 2011, has started negotiating with the DOE to defer the disconnection threats scheduled on July 22, then July 28, and finally July 30.

Legazpi City Mayor Noel Rosal said the city and municipal Mayors Leagues in Albay had pleaded that the disconnection be postponed for at least two more days, hoping Aleco would meet the P67 million from collections but the DOE said there was nothing it could anymore.

Meanwhile, Rosal said in a radio interview this morning that he and Rep. Fernando Gonzales of Albay third congressional districts are one with the recommendation that NEA should loan P36 million to Aleco to augment the amount needed to pay its current bill to power suppliers.

Aleco, on the other hand, said it will endorse the recommendation to NEA through a board resolution.

The request, according to Rosal, is parallel to Salceda’s call and initiative for immediate restoration of power to Albay the soonest possible time.

Gonzales furthered that the solution for Aleco to recover is not to infuse added capital but to increase collection efficiency from 65 percent to 95 percent and lower the system loss from 24 percent to 13 percent.

“With good management and cooperation of all consumers by paying their bills, Aleco can go back to its normal operation and move on towards recovery,” Gonzales said. (MAL/SAA-PIA5/Albay) 

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