Abreco posts turnaround

BANGUED, Abra - The ailing Abra Electric Cooperative (Abreco), hounded by fiscal woes in the past, has shown considerable improvement.

After undergoing its rehabilitation plan since February,  Abreco was able to reverse its financial deficit from an average net loss of P4.9 million monthly pre-rehabilitation status,  General Manager Loreto Seares, Jr. said.

Now, the power cooperative has an average net income of 238,000.00 per month, “a remarkable difference of 4,711,704.97,” he said.

Abreco’s supplier cut off electricity in Abra twice after its alleged failure to pay its monthly dues in December last year and March this year.

The National Electrification Administration has also ordered Abreco to shape up or it will be constrained to take over the power distribution cooperative.

But jumping back to life, Abreco is continuously implementing management and administration policies to improve further the average net margin of the cooperative in order to realize much needed distribution infrastructure improvement and repair in the province.

Almost all 31 provinces in Abra, even in the hinterland barangays, are now energized.

The implementation of the rehabilitation plan was so remarkable as it resulted to a complete turn-around Abreco in just a period of six months from the time it was implemented, Seares said.

However, Abreco is faced with legal problems after downsizing its workforce from 400 employees to 253 (147 permanent employees retrenched), Seares stood firm to their decision of complete implementation of the rehabilitation plan “as it’s the only way to save the cooperative.”   

The welfare  of the more or less 40,000 consumers and the province as a whole is more important than the effect of the legal battle that resulted from manpower downsizing, he said. By downsizing, the cooperative cut cost by as much as 26 percent on its payment of its workers.

The rehabilitation plan was approved by the multi-agency conference on February this year. 

Government and private sector cooperation and support is still a factor to consider in order to maintain and improve further the cooperative, Seares said, citing efforts by Abra Rep. Ma. Jocelyn Bernos who is closely working and supporting Abreco in its desire to implement the needed rural electrification program of the cooperative.    

“Our mandate of providing electricity to far-flung areas and unenergized sitios of the province as a response with the electrification program of the government will continue," Seares said.

The support of President Benigno Aquino III,  Energy Sec. Carlos Petilla, Power Sector Assets and Liabilities Management Corp., Aboitiz, the National Grid Corporation of the Philippines and National Electrification Administration “inspired us to reach our goals as stated in the rehabilitation plan of the cooperative,” Seares said.