NEA fails to revive Albay power cooperative

Business Mirror
SUNDAY, 25 MARCH 2012 18:11 MANLY M. UGALDE  / CORRESPONDENT


LEGAZPI CITY—The last ditch effort to revive the dying Albay Electric Cooperative (Aleco) under the management of the National Electrification Administration (NEA) has failed.
The power cooperative with 250,000 customers is experiencing a series of disconnection threats.


Albay Gov. Joey Sarte Salceda said Aleco is a problem cooperative, but blames the Epira law, saying under the said law, the operation of most power-supply cooperatives is even getting worse.


Aleco came under the NEA’s control since the early 1980s but has not proven any positive result, according to former Aleco board chair lawyer Oliver Olaybal.


Early last year, Salceda pushed the entire Aleco board members to resign to allow the NEA to manage the cooperative.


The privatization effort was strongly opposed by the Aleco union members and various sectors including the Church. Aleco has standing liabilities of P3.4 billion from NEA, NPC and Transco. 


With the entry of NEA in Aleco, a crisis management committee was created with Bishop Joel Baylon of the Diocese of Legazpi chosen as head and six Albay congressmen and the governor as members.


Baylon said the series of disconnection notices on Aleco this month was a result of Aleco’s failure to settle its obligation for two months with the Philippine Electricity Market Corp. (PEMC) equivalent to P122 million. Baylon said Aleco was able to cough up P20 million to negotiate for a reprieve.


Last March 21, Aleco consumers braced for at least four days without power but again a reprieve was granted, said Baylon.


Last March 7, Bishop Baylon issued a pastoral letter explaining that the problem in Aleco did not happen overnight. They were brought about by a system that miserably failed consumers, the statement said.


Ako-Bicol partylist Rep. Rodel Batocabe said Aleco was the second worse electric cooperative in the country burdened by corruption and rocked by system losses of 25 percent that remained unsolved for more than 20 years.


A few weeks after NEA took over Aleco in February last year, Lopez told the local media that Aleco would be revived in six months.