ALECO payment averts supply cut-Off

Manila Bulletin 
By Myrna M. Velasco 
Published: July 25, 2013 
The payment it made this week has prevented power supply disconnection for Albay Electric Cooperative (ALECO), according to Energy Secretary Carlos Jericho Petilla.
A notice of disconnection was served to the financially-ailing electric cooperative for supply cut-off as early as Monday (July 22). However, that was re-scheduled to the next day so it will not cause public agitation during President Aquino’s State of the Nation Address.
The energy chief, however, noted that a new billing of P67 million for August was already sent to the electric cooperative.
That is on top of the roughly P1.0 billion that ALECO owes to power generators on its supply procurement from the Wholesale Electricity Spot Market.
Petilla divulged that in his meeting last week with power generators and other stakeholders, a demand was already lodged for the settlement of the electric cooperative’s arrears.
He stressed that the Philippine Independent Power Producers Association Inc. (PIPPA) made formal request for the spot market operator Philippine Electricity Market Corporation (PEMC) to keep watch on the “payment delinquencies” of the ECs; and to possibly scour for mechanisms on how they can settle their dues the soonest possible time.
The energy chief concurred on promoting fiscal discipline on this segment of the power utilities, because failing to do so, will eventually pull down the financial viability of the entire power industry.
At this point though, PIPPA president Luis Miguel Aboitiz noted that most of the ECs are still “paying customers” with the exception of only a few.
Based on data provided by stakeholders, the total outstanding obligations of ECs with private power generators already climbed to P4.8 billion.
That is still marginal though compared to the P20.06 billion debts of the ECs with state-run Power Sector Assets and Liabilities Management Corporation.
The private sector players are more aggressive in going after the ECs’ settlement of debts; while it is worth monitoring how PSALM will handle the arrears it is obligated to collect from such delinquent utilities.   source