‘Aklan power rate hike avoidable’

MANILA, Philippines — The Aklan Electric Cooperative Inc. (Akelco) should invoke force majeure to prevent an increase in power rates with the closure of Boracay for six months, the chairman of the Senate committee on energy said yesterday.

“Clearly, the... closure of Boracay is an... event completely beyond the control of Akelco. This is definitely an instance when force majeure will apply,” Sen. Sherwin Gatchalian said.

Gatchalian said the impending declaration of a state of calamity in Boracay would bolster Akelco’s bid to suspend the procurement of unnecessary electricity while the island is closed.

“The state of calamity declaration will also allow local government units and Akelco access to calamity funds. These should be used to further mitigate the impact of the Boracay closure on electricity consumers in Aklan, Antique and Capiz,” Gatchalian said.

Power rates in Aklan are expected to increase as Akelco is seen to pass on to consumers its losses with Boracay’s closure.

From 28 megawatts, energy demand in the province is seen to drop to 4 MW as Boracay accounts for 47 percent of Akelco’s demand.

National Electrification Administration chief Edgardo Masongsong had earlier told a Senate hearing that Akelco is expected to increase power rates by P1.50 per kilowatt-hour.

Akelco said it is renegotiating its power contracts to continue its services amid the expected drop in demand. – With Paolo Romero