Albay residents suffer 400% power-rate increase in Nov.

BUSINESS MIRROR

SUNDAY, 19 DECEMBER 2010 20:09 MANLY M. UGALDE / CORRESPONDENT

LEGAZPI CITY—Residents in Albay province rallied on Friday against the poor power service and high power rate in the province, even as bankrupt Albay Electric Cooperative (Aleco) increased its bill by almost 400 percent in November.

The rally led by the Diocese of Legazpi Social Action Center was held infront of the Aleco office here on Friday, condemning Aleco’s continuing mismanagement and corruption that makes the power cooperative a virtually milking cow at the expense of its 250,000 consumers.

The Albay Consumers’ Watch said the disturbing billing for November was almost equivalent to a 400-percent increase inserted in the billing receipt under the “automatic generation cost.”

Earlier, Albay Gov. Joey Sarte Salceda asked for a power rate increase in Aleco equivalent to P1.66 per kilowatt in what he called would save Aleco from future disconnection. The move, however, was strongly protested by the Church, the militant group, and the business community, including the six Albay Congressmen.

Salceda’s proposal came following a disconnection threat in September from the Philippine Electricity Market Corp. due to Aleco’s unpaid P982 million in outstanding power supply.

Today, Salceda said, the total loan obligations of Aleco including from power sector assets and liability management has shoot up to almost P3 billion from P2.2 billion a few months back. Salceda is touted as the father of the Aleco board of directors.

Asked to comment on Aleco’s current billing, Salceda said he would only meddle in the affairs of Aleco when there is another disconnection notice.

Salceda had succeeded in averting the disconnection threat after he asked President Benigno Aquino III for help.

First District Albay Congressman Edcel Lagman said that Salceda’s power rate proposal was outright rejected by the Department of Energy. Last month, the Diocese of Legazpi headed by Bishop Joel Baylon, Energy Secretary Jose Rene Almendras, National Electrification Adminisration (NEA) administrator Edith Bueno and the Albay congressmen met in Legazpi City to save dying Aleco.

The meeting resulted in the proposal to create the Aleco crisis Committee to be headed by Bishop Baylon, said Ako-Bicol party-list Rep. Rodel Batocabe.

The Crisis Committee would remove the Aleco board in the management, making them a virtual consultative body, Batocabe said.

Pending final approval of the Crisis Committee, the multisectoral groups are asking for the head of Aleco general manager Alex Realoza.

Realoza said his removal would depend on the decision of the board. He defended his stay. He even lashed at the management of the NEA during its almost 20 years control of the cooperative in their rehabilitation efforts. He also cited the previous management of Aleco by a church officials saying the NEA and church officials’ control of Aleco did not also show signs of rehabilitation.

In August, Albay Congressman Al Francis Bichara delivered his privileged speech in Congress denouncing Aleco’s management and corruption. He asked for a congressional inquiry.

But the Albay Consumer’s Watch lamented the much-awaited congressional inquiry has yet to be calendared.