Aboitiz Power unit resumes ABRECO supply

MANILA, Philippines - A unit of Aboitiz Power Corp. (AP) has suspended its plan to stop supplying electricity to Abra Electric Cooperative (ABRECO).

“The deferment is due to the timely intercession of (local government officials),” said Juan Alfonso, senior vice president of AP Renewables Inc.

“We are expressing confidence in the local leaders of Abra to help facilitate a fair and reasonable resolution to this issue at the soonest possible time,” Alfonso added.

AP Renewables originally scheduled the disconnection of power supply to ABRECO on Sept. 27.

Debts of ABRECO, which started sourcing power from AP Renewables in December 2011, already reached P53 million, of which P32 million is for security deposit and P21 million for unpaid bills.

The power generator said ABRECO has repeatedly failed to settle its obligations. Hence, AP Renewables sent a notice of disconnection to ABRECO on Sept. 18.

AP Renewables’ geothermal units in Batangas and Albay sell electricity to ABRECO.

“We believe the local officials and ABRECO will continue to put the best interests of the people of Abra in this issue,” Alfonso said.

The situation of ABRECO mirrors the woes of numerous electric cooperatives, which distribute power in provinces.

Total debts of electric cooperatives hit P18.68 billion as of end-June, data from the Department of Energy (DOE) showed.

The electric cooperatives have yet to settle their obligations to the National Power Corp., Power Sector Assets and Liabilities Management Corp. and National Electrification Administration.

The DOE said the electric cooperatives are hampered by inefficient operations, wrong management practices and bad governance. The debts also put the consumers at risk of power outages.

The bad reputation of electric cooperatives is also discouraging investors from building around a dozen of new power plants, the DOE said.

AP is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services. It is into several coal-fired, hydroelectric and geothermal assets across the country.

AP owns and operates the 747-MW Tiwi-Makban geothermal plants in Albay, two 100-MW bunker fired power barges.