GMA condones P18-B power co-ops’ loans

Malacañang approved yesterday the condonation of some P18 billion outstanding loans of 119 electric cooperatives to the government.

Energy Secretary Vincent S. Perez said this is a welcome development after a number of issues being raised by several electric cooperatives on the loan condonation.

"We are very pleased that the President has approved the condonation of the rural electrification loans of the electric co-ops. This means lower electricity rates to more than six million households served by the coops throughout the country," Perez said.

The Association of Philippine Electric Cooperatives (APEC) had complained about the delay in the issuance of an Executive Order (EO) which was supposed to have been drawn up one year after the promulgation of the EPIRA last June 26, 2001.

Perez said the condonation of the cooperatives’ rural electrification loans incurred as a of June 26 last year is only one of the programs outlined in the EO promulgating the restructuring program for electric cooperatives.

"Members of the energy family worked together with Malacañang until late evening last Thursday to finalize the EO. While the Electric Power Industry Reform Act mandates the condonation of the co-ops financial obligations, we want to emphasize that there is a need to implement lasting reforms in the operations of the electric co-ops because the rural electric consumers deserve the best service that they can get," he said.

Section 60 of EPIRA (Republic Act 9136) provides for the condonation of all outstanding financial obligations of electric co-ops to National Electrification Administration (NEA) and other government government agencies which were incurred for purposes of financing the rural electrification program of the government, citing the gains achieved in Lanao del Sur, Masbate and Basilan.

But Perez said President Arroyo also stressed that a comprehensive restructuring program will seal the fate of a developed and improved electrification service in the countryside.

"I will not allow any EC to hold hostage to its inefficiencies the thousands of member-consumers in its area coverage. Our people deserve the best, and I will see to it that they get it," President Arroyo said.

The energy chief said President Arroyo also ordered NEA to "exercise forcefully, strictly and consistently its supervisory powers over the electric co-ops."

President Arroyo, Perez said, also directed NEA to see to it that the services rendered by electric co-ops improve within 180 days following issuance of the EO.