Thursday, August 2, 2012

Energy eyes sale of co-op

Manila Standard Today
By Alena Mae S. Flores | Posted on August 02, 2012 | 12:01am

The Energy Department proposed the privatization of Albay Electric Co. to stop the electric cooperative’s financial bleeding.
Energy Secretary Jose Rene Almendras said the department, in cooperation with other government agencies “are looking at a solution to turn over Aleco through a concession system” which would allow a private investor to come in.
“You need somebody who will infuse capital to pay off the debt to the generator so that life can go on,” Almendras said.
Almendras, however, assured that Aleco’s privatization would not run counter to its charter or the mandate of the National Electrification Administration.
Aleco’s debts hit P1 billion. Philippine Electricity Market Corp., operator of the wholesale electricity spot market, sought the disconnection of Aleco from the Luzon grid last year, but the department and the local government of Albay stepped in and averted a massive blackout in the province.    source

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