DOE cites gains made by Aklan Electric Cooperative

Energy Secretary Vincent Perez said the turn-around marked by the Aklan Electric Cooperative (AKELCO) is expected to further boost the growth of business in the province, particularly the tourism industry in the resort island of Boracay.

Perez made the statement as AKELCO marked the first year of the implementation of its massive rehabilitation and efficiency program and in a bid to save its then floundering operations.

It will be recalled that in March last year, the National Power Corp. Napocor was forced to disconnect its services to the province following AKELCO’s failure to pay some P135 million in unpaid obligations. The National Electrification Administration (NEA) took over the cooperative in April 22 last year – exactly one year ago today – after which a new management was installed.

The co-op’s payables to Napocor has been trimmed down to P50 million even as it remains current in servicing of its obligations.

Perez noted that following the turnaround, some P10 million in new investments have flowed into Boracay.

Efficient and reliable power supply always encourages the entry of new business, Perez underscored as he noted the significant improvement in AKELCO’s performance indicators. Fr. Francisco Silva, NEA administrator, reported that the co-op’s collection efficiency has radically improved from 78 percent to 98 percent while system’s loss has significantly dropped from 22.4 percent to 16.49 percent.

Boracay-based resorts have also increased their power utilization rate from 60 percent to 98 percent. This signals major increases in business activity as triggered by the efficiency and reliability of the community’s power supply, Perez noted.

The energy chief also cited the reduced incidences of brownouts in the province. The new management reported that power interruptions have been pegged at an average of a measly 0.9 hours per month, compared to the 7.54. hours per month average prior to the NEA takeover.

Perez also noted that the new AKELCO management was able to energize 23 additional barangays in a span of 11 months. Prior to the change in management there were some 18 barangays waiting to be energized as part of President Arroyo’s commitments in her State of the Nation Address. The continuing energization projects have brought the total household connections to 57,239 compared to 54,116 before the new management took over.

According to Perez, the improvement in the efficiency and productivity of rural electric cooperatives (ECs) "is an important cog in President Arroyo’s strategy to reduce the cost of electricity in the country and ensure reliable power supply".

"The President believes that the transformation of ECs into efficient service organizations that can help their countryside-based customers benefit from a deregulated and competitive electricity market," Perez said.

He said President Arroyo is confident that efficient electric co-ops "can help bring about long-term benefits, especially affordable power rates, to customers in the provinces".

Cheaper electricity, in return, is expected to spur the growth and expansion of countryside-based industries and enterprises.

This is definitely what we are seeing in Aklan, particularly in Boracay, as a result of the gains marked by AKELCO, Perez said

Perez also cited the "strong spirit of cooperation among ECs" which was evident in the success of AKELCO’s turnaround. When NEA took over the EC last year, other ECs came in to lend technical and financial assistance to the then beleaguered AKELCO. Among these were the Cebu Electric Cooperative (CEBECO) and the Iloilo I Electric Cooperative (ILECO).