ERB won’t increase Albay power rate

Written by Manly M. Ugalde / Correspondent

SUNDAY, 26 SEPTEMBER 2010 09:40

LEGAZPI CITY—The Energy Regulatory Board (ERB) is not inclined to grant the proposed power-rate increase for Albay equivalent to P1.66 per kilowatt-hour (kWh), said Rep. Edcel Lagman. Lagman, 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 backed up by Gov. Joey Sarte Salceda. Salceda had proposed that to spare Albay from future power disconnections, Aleco should be allowed to increase its rate equivalent to P1.66/kWh from its original rate of P8.66. The controversial proposal came on the heels of the disconnection threat for Aleco on Sept. 12 from the Philippine Electricity Market Corp. following its unpaid debt of P982 million, equivalent to 36 months of payment installments. Salceda averted the threat after he sought the intervention of President Benigno Aquino III. Salceda said the proposed P1.66/kWh rate increase is the only solution to make Aleco stable and avert future disconnections. But the six Albay congressmen who included the three nominees of the Ako-Bicol party-list strongly contradicted Salceda’s efforts. Party-list Rep. Rodel Batocabe of Ako-Bicol blamed the National Electrification Administration’s negligence in averting the culture of abuses within Aleco, now branded as the worst electric cooperative in the country. The two other mismanaged electric cooperatives are in Lanao and Sulu, said Batocabe. Aleco stands accused from its employees’ union officers of extreme graft and corruption and mismanagement under the leadership of Alex Realoza as general manager. Joining the Aleco employees’ union fight against Aleco’s management are the Albay Consumers’ Watch, the Catholic Church’s Social Action Center and Bayan Muna, who all complained that despite of the P300-million rehabilitation funds (not P50 million as earlier reported) for Aleco after the 2006 Typhoon Reming devastation, Aleco remains not rehabilitated. Rep. Al Francis Bichara (Second District, Albay) said it’s quite disturbing that Aleco remains in bad financial straits despite the enormous funds it received from the Calamity Assistance Rehabilitation Efforts after Typhoon Reming. Bichara said in June 2008 Aleco, through the Albay provincial governmen, entered into a contract with the National Power Corp. (Napocor) for its “operation and maintenance” to avert Aleco’s total bankruptcy. He said with Napocor getting impressive rehabilitation for Aleco, the Aleco board suddenly terminated its contract with Napocor in “an obvious effort to harvest the gain made.”