NEA intensifies effort to rehabilitate ailing power co-ops

MANILA, Philippines - The National Electrification Administration (NEA) has intensified efforts to rehabilitate ailing electric cooperatives (ECs) to enable them to operate under a restructured power industry.

NEA has deployed a management team to provide assistance to the Tawi-Tawi Electric Cooperative Inc. (TAWELCO), a debt-ridden and problem-plagued electric distribution utility in Southern Philippines.

Since its assumption in April 2009, the management team has instituted various programs to address the existing problems such as high system loss, rampant electricity pilferages and human resource/institutional instability.

One of the strategic initiatives adopted was the Meter Installation Standardization Program (MISP), which aims to lessen, if not eliminate the relentless connivance between meter readers and consumers to underread the meters thus, resulting to high system losses.

In order to implement the program, NEA extended a concessional loan amounting to P11.6 million at an interest rate of four percent to replace 5,645 old and defective kilo watt-hour meters to more efficient and accurate digital/electronic systems.

Significant reduction on system loss of about 13.71 percent has been attained since the program was implemented in April 2009.

The reduction meant savings of around P1.698 million. Aside from this initiative, TAWELCO has been continuously conducting anti-pilferage campaign wherein some 500 consumers were apprehended and penalized to date.

The team also addressed the problem on erring personnel through strict implementation of its employees code of ethics. Suspensions and terminations were already effected.

“NEA will always be behind these ECs which need assistance. It is our mission to provide a more reliable and efficient electricity service in order to create a better and more comfortable live for the people in the rural areas, like Tawi-Tawi. Thus, we hope that the reforms that have been introduced and being implemented by our NEA management team,” NEA administrator Edita S. Bueno said.

TAWELCO has since attained 100 percent barangay energization in 2009 through on-grid and off-grid electrification schemes. It now serves 10, 918 consumer connections as of July 31, 2010.