Zameco II president Jose S. Dominguez said the rate reduction came about after the cooperation became debt-free, having wiped out its arrearages with the National Power Corp. The co-op’s account stood at about P9 million as of January this year, but Zameco was able to settle this in full in just four months, five months ahead of its original repayment schedule.
"In becoming current with our accounts last April, we qualified for prompt payment discounts by May," Dominguez said.
The rate reduction was reflected in the September billings, based on the provisional authority granted by the Energy Regulatory Commission (ERC).
Zameco II covers 111 barangays in seven municipalities – Subic, Castillejos, San Marcelino, San Antonio, San Narciso, San Felipe, Cabangan – and was recently cited by the National Electrification Administration for having achieved 100 percent barangay electrification.
Early last year, Zameco entered into an investment and management tie-up with the Philippine Power Distributors Investment Corp. (PPDIC), for the latter to help improve the operating and administrative systems of the co-op, upgrade its distribution infrastructure, and to infuse capital to improve the cash flow.
"We have invested P15 million in the rehabilitation and improvement of our lines, substation and maintenance equipment from internally-generated funds," Dominguez reported. An additional investment of about P120 million is earmarked for 2004, he added.