Meralco, partner to take over Pampanga electric co-op

By Ding Cervantes (The Philippine Star) | Updated May 29, 2014 - 12:00am

MABALACAT CITY, Philippines - – The Manila Electric Co. (Meralco) and its local partner ComsTech are finally taking over next month the management and operations of the beleaguered Pampanga Electric Cooperative II (Pelco II) which supplies electricity to this city and five towns.

“We are pumping some P1.2 billion for the takeover of Pelco II whose debt amounts to as much,” said Dennis Uy, president and chief executive officer of Angeles City-based ComsTech.

Uy said the takeover starts this June, adding that Meralco chairman Manny Pangilinan considers this as part of his legacy to his fellow Kapampangans. Pangilinan was born in Apalit town.

With an offer of P1.2 billion, Meralco and ComsTech won the bidding for the investment and management contract of Pelco II as authorized by the National Electrification Administration (NEA). The contract would last 20 years, Uy said.

“Pelco II will still own the cooperative, but Meralco and ComsTech will manage and operate it under the investment and management contract,” Uy said.

The contract also provides that Meralco and ComsTech will assume responsibility for the electric cooperative’s liabilities, he added.

Apart from this city with a population of about 300,000, Pelco II also distributes power to the towns of Guagua, Bacolor, Sta. Rita, Lubao, and Porac.

A survey conducted among its consumers indicated widespread dissatisfaction with its electric service, amid allegations of questionable bills.

“Among the things we plan to do is to adopt a system to make sure that those who read electric meters really do, and not merely guess,” Uy said.

Uy gave assurance on the availability of retirement funds for long-time Pelco II workers who have long wanted to retire but could not do so because of lack of funds.

He said Pelco II’s workforce is bloated with 500 personnel, despite estimates it could work efficiently with only 150.

“All those who will have to go should, however, (they will) be given the proper benefits,” he said.

Last December, Pelco II board members adopted a resolution issued by the NEA inviting all interested and qualified parties to participate in the bidding for providing investments and the management of assets, operations, business and liabilities of Pelco II.  source