Albay electric coop drops top delinquents, reconnects to grid, to undergo rehab

Debt-ridden Albay Electric Cooperative (Aleco) got reconnected to the Luzon energy grid Wednesday, but to stay in operation it must have new management and four firms want to take on the challenge, Energy secretary Carlos Jericho Petilla said on Wednesday.

 

Petilla met with top officials of power producers and energy sector regulators and emerged from that with a rehabilitation plan, which, for starters, required  Aleco to drop its top 100 delinquent customers.

 

"I am proposing rehab plans (for Aleco). What I'm proposing is that there will be private sector that will come in... Same franchise but management will be private sector. It will be bidded out," Petilla said after the emergency meeting.

 

He said there is hope for Aleco because, “ if you look at it...is a big franchise. Aleco is number six in sales all over the country. It can be profitable if ran properly." Petilla said.

 

He said the four firms willing to manage Aleco are San Miguel Corporation, Manila Electric Co., Aboitiz Power Corp. and another unidentified firm.

 

"Those who will bid will run the cooperative but they will also take over the debt," he said.

 

Aleco owes about P1 billion to the Philippine Electricity Market Corp., Power Sector Assets and Liabilities Corp., National Electrification Administration and National Grid Corporation of the Philippines.

 

Aleco also debts of P19 million in debts with Legazpi City, according to Mayor Noel Rosal who asked that  settle Aleco’s June 2013 obligations within 3-5 days.

 

It was also stressed in the emergency meeting that aside from the June 2013 obligations, the cooperative would also have to settle the incoming July consumption billing by August 1 apart from their outstanding P1 billion debt .

 

Petilla said the firm that wins the bid to manage the ailing electric cooperative will be presented to Aleco and its stakeholders.

 

"Why are we bringing it to the people? Because we've grown tired of presenting options and they reject it so I said, you choose and whomever you choose, support them," the Energy secretary said. — ELR, GMA News