DOE gives Albay power co-op more time to settle P4-B debts

LEGAZPI CITY , Philippines   â€“ The Department of Energy (DOE) has given the Albay Electric Cooperative (Aleco) more time and softer terms to settle its debts amounting to nearly P4 billion, Albay Gov. Joey Salceda said yesterday.

Following a series of negotiations, Salceda said Energy Secretary Jericho Petilla also agreed to give Aleco sufficient time to settle its June billing balance of P19 million to the Philippine Electricity Market Corp. (PEMC).

Petilla’s intercession led to the reconnection of power to Albay on Wednesday afternoon, or 29 hours after the National Grid Corp. of the Philippines (NGCP) cut off electricity to the entire province.

“The DOE also stood by its position that the P1-billion PEMC loans be negotiated over the medium term (10 years indicated in the presentation), and the P3-billion debt with PSALM (Power Sector Assets and Liabilities Management Corp.) over the much longer term,” Salceda said.

With this scheme, Salceda said Aleco’s P3-billion PSALM debt, plus the P300-million debt with the National Electrification Administration (NEA), are being put aside for the meantime while Aleco is improving its operations, particularly its collection efficiency, which merely reaches 55 percent for its current collectibles or 76 percent if collected arrears are to be included.

“Ergo, Aleco must only collect and pay what it had purchased in the PEMC billing statement. These (payment schemes) are even better than what I and (then DOE) Secretary Jose Almendras agreed on in August 2010,” Salceda said.

Hours prior to the power reconnection, League of Cities of the Philippines Bicol chapter president and Legazpi City Mayor Noel Rosal, and Albay third district Rep. Fernando Gonzalez wrote the NEA requesting a P36-million loan to be used in paying Aleco’s current billing balance with PEMC should it fail to immediately collect the needed amount.

“We appeal to you for your assistance to further avoid chaos and huge economic loss in the province of Albay. On behalf of our league members in Albay and honorable congressmen of the province, we will do our best to assist Aleco in their collection performance and any plan for a long-term solution to its gargantuan past obligation,” Rosal and Gonzalez said.

Rosal said Petilla, who was furnished a copy of the letter, acted favorably to their request, leading to the power reconnection.

Local businessmen lauded the concerted efforts of provincial leaders for the immediate power restoration to Aleco’s 170,000 member-consumers.