Power cut off in Albay due to massive electric bill

Power was cut off to the entire Albay province starting noon Tuesday, due to the provincial electric cooperative's failure to settle its dues.

Several traders and residents in the province were irked over the sudden loss of power, radio dzBB's affiliate Boy Reyta Jr. reported.

The report said many customers of the cooperative complained they had paid their bills every month.

Earlier this year, Albay Electric Cooperative (ALECO) had been warned its supply would be disconnected if it cannot settle its dues.

According to a report on GMA's Balitanghali, ALECO owes the Philippine Electricity Market Corporation (PEMC) P69 million, and owes another P962 million for its unpaid February, March and April 2010 electricity bills.

For its part, the Department of Energy said it is assisting ailing electric cooperatives such as the Albay Electric Cooperative, Inc. (ALECO) to ensure continued power service.

In a statement, the DOE said it has been talking with the PEMC, the National Grid Corporation of the Philippines, and the National Electrification Administration "on finding ways to avoid disconnection as a result of ALECO's and other ECs' non-payment of power sourced from the generators through the Wholesale Electricity Spot Market (WESM)."

It added there has been continued discussion on the restructuring and rehabilitation program for ALECO including ways and means to mitigate the impact to its consumers.

"However, private power generation entities inevitably avail of the remedy of disconnection of some distribution utilities in order to minimize losses in the event of non-payment and to stop the further accumulation of debts.  Power generators have likewise obligations to their creditors, while the financial viability of the WESM must be ensured," it said.

The DOE appealed for cooperation from the public, ailing ECs and power generators "to place the welfare of the consumers in their decisions affecting the power supply."

On July 2, Olongapo City was able to avert the disconnection of its power supply over unpaid bills. — BM, GMA News