MANILA, Philippines - The Department of Energy (DOE) has stepped in to help 13 of the most ailing and debt-saddled electric cooperatives in the country to avert power outages in their franchise areas in Luzon, Visayas and Mindanao.
Of the 13 ECs, six have combined arrears of P10.69 billion to Power Sector Assets and Liabilities Management Corp. alone for purchased power, based on data as of end-September.
PSALM is the government corporation tasked to privatize state-owned power assets.
The DOE and the National Electrification Administration (NEA) have identified the 13 ECs as ailing because of several indicators namely: debts owed to PSALM and to various service providers and power sources such as the National Grid Corp. of the Philippines (NGCP) and private power companies; negative net worth, and their system losses that are above the 13-percent cap set by the Energy Regulatory Commission (ERC).
Failure to settle debts may result in blackouts in the areas served by ECs as they may be cut off from their sources of power.
Energy Secretary Carlos Jericho Petilla has stepped in to hold regular dialogues among local government units, local communities and power producers in the areas served by these problematic cooperatives.
The debt-ridden ECs are the Pampanga III Electric Cooperative Inc. (PELCO III), Albay Electric Cooperative Inc. (Aleco), Camarines Sur III Electric Cooperative Inc. (Casureco III), Masbate Electric Cooperative Inc. (Maselco), Ticao Island Electric Cooperative, Inc. (Tiselco) and the Northern Samar Electric Cooperative Inc. (Norsamelco).
In Mindanao, the problematic ECs are the Tawi-Tawi Electric Cooperative Inc. (Tawelco), Basilan Electric Cooperative Inc. (Baselco), Sulu Electric Cooperative Inc. (Suleco) and the Lanao Sur Electric Cooperative Inc.
The Mindanao cooperatives are the biggest thorn on Petilla’s side with their huge amount of debts.
Of the 13 ECs, for instance Magelco in Mindanao has the biggest system loss at 41.23 percent while Lasureco in Lanao del Sur has the biggest debt to PSALM at P6.77 billion and to NGCP at P1.612 billion.
NEA, for its part, has been trying to improve the operations of ECs especially with its charter now stronger after President Aquino approved charter amendments last year.
Republic Act 10531 or An Act Strengthening the National Electrification Administration, Further Amending for the Purpose Presidential Decree 269, as Amended Otherwise Known as the National Electrification Administration Decree, was signed on May 7, 2013.