San Miguel Energy Corp. rescues Albay from power crisis
Power Energy

San Miguel Energy Corp. rescues Albay from power crisis

Jan 9, 2023, 8:08 AM
OpinYon News Team

OpinYon News Team

News Reporter

Albayanos can rest assured that they will have enough power supply this whole year, at least, with San Miguel Energy Corp. rescuing the ailing Albay Electric Cooperative from the shaky transition from Albay Power and Energy Corp.

The entry of SMEC into ALECO was made possible through the intervention of the National Electrification Administragtion, the provincial government of Albay (PGA) and ALECO.

In a recent press conference held at the Provincial Guest House, Governor Edcel “Grex” Lagman revealed that Albay’s continuous supply of power is assured 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.

Bucsit, however, admitted that ALECO is an ailing cooperative with “stage three cancer,” although he is hopeful it could still recover and be a viable electric cooperative again.

Lagman said the provincial government has already readied disbursement vouchers for the payment of its P 1.7 million electric debts.

He wants the provincial government to take the lead in paying ALECO so that the other 18 LGUs will follow suit.

He expects to pay said arrears within next week.

Lagman also disclosed that P68-M in local fund is available to construct at least two (2) electric substations that will reduce the transmission losses of ALECO.

Once said losses are lowered, the electricity rates will also be reduced as this is passed on to consumers.

To recall, ALECO had a concession agreement with APEC but the same was terminated when former Gov. 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 provide false hopes to Albayanos.

The former governor even went as far as announcing that the PGA will bail out ALECO to the tune of P200-M using local public funds.

Faced with the looming energy crisis owing to its indebtedness to Wholesale Electricity Spot Market (WESM) and Independent Electricity Market Operator of the Philippines (IEMOP) as well as the absence of any power supply agreement, ALECO issued a statement that it sees massive power outages starting Christmas Day, when it fully takes control.

In the press conference, Engr. Bucsit debunked Rosal’s claim that NEA will bail out ALECO in the amount of P200-M.

He also stated that NEA can only loan a maximum of P50-M to ALECO but it was not legally allowed to subsidize it.

GM Romeo Acuesta corroborated Bucsit’s statement that Rosal’s claim that the PGA can use its funds to bail out ALECO in the amount of P200-M is legally untenable because LGUs cannot use public funds to subsidize or loan to an electric cooperative.

The foregoing prompted incumbent Governor Lagman who has since replaced Rosal to support the negotiations of NEA Administrator Antonio Mariano Almeda with San Miguel’s Ramon S. Ang.

Ang acceded to Almeda’s appeals for him to help start the process of securing an EPSA between SMEC and ALECO.

Despite previous troubles between Albayanos and Apec, Ang agreed to shell out P500-M to pay ALECO’s supplier and has granted an Emergency Power Supply Agreement to ALECO in the next 12 months.

Governor Lagman for his part committed full support to the management team headed by Bucsit.

Lagman also promised the support of the PNP and the AFP in ALECO’s campaign to eradicate illegal connections and electricity pilferage in the province.

More about Power Energy

 President Marcos Jr. on Panay Island power outage

President Marcos Jr. on Panay Island power outage

a month ago



4 months ago

We take a stand
OpinYon News logo

Designed and developed by Simmer Studios.

© 2024 OpinYon News. All rights reserved.