Monday, September 27, 2010

Energy board declines to grant power rate increase for Albay

BY MANNY T. UGALDE CORRESPONDENTManila Times
LEGAZPI CITY: Rep. Edcel Lagman of the First District of Albay said the Energy Regulatory Board (ERB) was not inclined to grant the proposed power rate increase—equivalent to P1.66 kilowatts per hour—for the province.
The congressman, however, clarified that the ERB has not yet received the petition for the power rate increase from the bankrupt Albay Electric Cooperative (Aleco), which is supported by Gov. Joey Salceda.

In an effort to spare Albay from future power disconnections, the governor had proposed that Aleco should be allowed to increase its rate equivalent to P1.66 per kwh from P8.66.

The controversial proposal came on the heels of the disconnection threat the company received on September 12 from the Philippine Electricity Market Corp. on account of its unpaid P982 million debt.

Salceda, who managed to avert the threat after he sought the intervention of President Benigno Aquino 3rd, opined that the proposed P1.66-per-kwh rate increase is the only solution to make Aleco stable and avoid future disconnections.

But the six Albay congressmen, including the three nominees of the Ako-Bicol party-list, strongly opposed Salceda’s efforts.

For his part, Rep. Rodel Batocabe of Ako-Bicol party-list blamed the National Electrification Administration’s negligence in redressing the culture of abuses within Aleco, now branded as the worst among the three poorly-performing electric cooperatives in the country.

In addition, officers of Aleco’s employees union accuse the power cooperative of extreme graft and corruption and mismanagement under the leadership of general manager Alex Realoza.

The Albay Consumers’ Watch, the Catholic Church’s Social Action Center, and Bayan Muna also joined the union’s fight against the Aleco management. They complained that, despite the P300-million rehabilitation fund (not P50 million as earlier reported) allocated to it after the devastation caused by Typhoon Reming in 2006, Aleco still needs to be rehabilitated.

Rep. Al Francis Bichara of the Second District of Albay said it’s quite disturbing that Aleco still talks about rehabilitation in spite of the enormous funds it received from the Calamity Assistance Rehabilitation Effort.

He lamented that in June 2008, Aleco, through the provincial government of Albay, entered into a contract with the National Power Corp. (Napocor) for its “operation and maintenance” in an effort to avoid total bankruptcy.

He said that with Napocor getting impressive rehabilitation for Aleco, its board suddenly terminated the contract so it could harvest the gains.

In a privilege speech he recently delivered in Congress, Bichara exposed Aleco’s ills and how these continue to affect its 250,000 consumers. He said a congressional inquiry is forthcoming for Aleco.

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