06/01/2023
ALBAY POWER BACK ON TRACK
After a shaky transition from the Albay Power and Energy Corporation (APEC), the erstwhile management concessionaire of Albay Electric Cooperative (ALECO), the province’s power is back on track. This was made possible through the efforts of the National Electrification Administration, ALECO, the Local Chief Executive of the Provincial Government of Albay (PGA) and San Miguel Energy Corporation (SMEC).
In a press conference held today at the Governor’s Guest House, Governor Edcel “Grex” Lagman revealed that Albay’s continuous supply of power is assured in the next twelve (12) months because of the efforts of the abovementioned agencies through an Emergency Power Supply Agreement (EPSA).
ALECO Acting General Manager, Engr. Wilfredo Bucsit assured Albayanos of the viability of ALECO’s operations in the coming months. Bucsit confirmed that the guaranteed and continuous supply of electricity has buoyed up the spirit of Albayano consumers. Starting 3 January 2023, there was a welcome spike in the number of consumers who have recently started diligently paying their current electric bills to ALECO.
Bucsit who admitted that ALECO is an ailing cooperative with “stage three cancer” could still recover and be a viable electric cooperative again. Governor Lagman also said that the PGA has already readied disbursement vouchers for the payment of its. 1.7 million electric arrearages. He wants the PGA to take the lead in paying ALECO SO that the other 18 LGUs to follow suit. He expects the PGA to pay said arrears within next week.
Governor Lagman also disclosed that 68M local funds are available to purchase at least two (2) electric substations that will reduce the transmission losses of ALECO. Once said losses are lowered, the electricity rates will also go lower as this is passed on to consumers.
To recall, ALECO had a concession agreement with APEC. But the same was terminated when former Governor Rosal actively initiated the convening of a Special Annual General Membership Assembly on 3 September 2022. This paved the way for the ALECO to fully manage and operate the purchase and distribution of electricity to the whole province starting 25 December 2022.
However, there was no power supplier willing to help ALECO. Hence, no power supply agreement was in the offing as there were zero takers.
Left without a power supplier, Rosal still continued to raise the hopes of Albayanos in October assuring them not to worry as NEA was willing to shell out two hundred (200) million pesos to pay the debts of ALECO and claimed that the Energy Development Corporation (EDC) and/or Aboitiz will supply electricity to ALECO. He even went as far as announcing that the PGA will bail out ALECO to the tune of 200 million pesos using local public funds.
Faced with the looming energy crisis owing to its indebtedness to WESM and IEMOP as well as the absence of any power supply agreement, ALECO issued a statement that it sees massive power outages starting 25 December 2022, Christmas Day, when it fully takes control.
In the presscon, Engr. Bucsit debunked Rosal’s claim that NEA will bail out ALECO in the amount of P200Million. He also said that NEA can only loan a maximum id P50 Million to ALECO but it was not legally allowed to subsidize it. GM Romeo Acuesta also said that Rosal’s claim the PGA can use its funds to bail out ALECO in the amount of 200 million pesos is legally untenable because LGUs cannot use public funds to subsidize or loan to an electric cooperative.
Thie foregoing prompted Governor Lagman to support the backdoor negotiations of NEA Administrator Antonio Mariano Almeda with San Miguel’s Ramon S. Ang. The latter acceded to Mr. Almeda’s appeals for him to help start the process of securing an EPSA between SMEC and ALECO.
Despite of being hurt from what the Albayanos did with APEC, Ramon Ang agreed to shell out P500M to pay ALECO’s supplier and has granted an Emergency Power Supply Agreement to ALECO in the next twelve (12) months.
Governor Lagman ended the presscon by committing to the management team headed by Bucsit full support to ALECO’s clearing operations starting on January 18 until January 31 by providing at least three (3) dump trucks for said effort. Lagman also promised the support of the PNP and the Army in ALECO’s campaign to eradicate illegal connections and electricity pilferage.
