Multi-Sectoral Groups Hit Privatization of Albay Power Coop

LEGAZPI City, Sept. 12, 2010-The power cut off by the Philippine Electricity Market Corp. (PEMC) to the Albay Electric Cooperative (ALECO) on Sept. 12, was seen by its more than 200,000 member-consumers as a means to pave the way for the power rate hike and privatization of the sole power distribution in the province of Albay.

This was the impression got by the multi-sectoral groups including the Catholic Church following Albay Gov. Joey Sarte Salceda's announcement of power rates' increase by P1.66 to the present rate of P7.56 to pay the amount of P983 million debt of ALECO to PEMC.

During a meeting held at the Sangguniang Panlalawigan Session Hall, Salceda announced that the power rate hike should be implemented during ALECO's next billing up to three years.
His pronouncement drew varied reactions from elected officials present in the meeting.

"How can we explain this power rate hike to our constituents?" asked Tabaco City Mayor Crisel L. Lagman.

Other attendees who did not show opposition to Salceda's "bitter pill" were considered by the governor as "relatives".

The Catholic Church, however, has reacted sharply after Salceda mentioned Aboitiz many times as the one chosen to run ALECO if financial problems persist in this power cooperative that has been projected as "bankrupt" since 1999 up to the present.

"Were all options that would solve ALECO's problems [not] sufficiently considered and exhausted that we now turn to a private firm?" Fr. Ramoncito S. Segubiense of Social Action asked in an action plan paper.

BAYAN MUNA information officer, Tessa Lopez, on the same vein commented that the current power crisis in Albay should not be used by proponents with hidden agenda for privatization of ALECO as she pushed for a full blown investigation by Congress to look into why the cooperative is heavily indebted and intentionally mismanaged.

Albay Consumers Watch (ACW), another consumer group, has issued a position paper that corruption exists in the ailing power cooperative and that despite ALECO's financial gain of P30 million monthly in 2008 and 2009, the same problem of indebtedness persists.

Lack of transparency in purchasing hardware needed by ALECO usually shortened to negotiated contract; and lack of policy that will allow the cooperation and participation of the consumers by the Board of Directors whose signatures only appear on money appropriations are existing problems that aggravate the financial problems of the cooperative, ACW said. (Elmer James Bandol)