Thursday, June 11, 2009

Napocor Unilateraly Terminates Akelco Electric Power Contract


by ERNESTO T. SOLIDUM
Some 400 member consumers of Aklan Electric Cooperative Inc., (AKELCO) attended the 26th Annual General Membership Assembly. It was held Saturday afternoon, June 6, 2009 at Engr. Job Y. Besana Hall, Lezo, Aklan. The participants came from the 10 Akelco districts of Aklan including Pandan and Libertad, Antique. "Keeping the Lights On" was the theme with honored guest, Cong. Florencio T. Miraflores.

The solon barred Napocor’s letter signed by Mr. Froilan M. Tanpingco. The letter conveyed the termination of the Napocor’s contract obligation to supply 29 megawatts (MW) to Akelco until June 25, 2009 only. The basis is the huge financial debt of P500 billion by the Agency and the implementation of EPIRA law that mandates local electric coops to tap independent power producers. In effect much of our lives, business and industry will suffer if Napocor did not extend its contract beyond the date stated, said Mr. Miraflores. (The current electric supply contract will expire sometime in 2011). It should be underscored that our present power partner supplier Global Business Power Corp (formerly Mirant) is virtually helpless in delivering critical power services particularly during peak hours and regular maintenance service interruptions.

Mr. Jose Carl C. Quimpo, President, Board of Directors, announced that it has given green light to ASEA One Power Corp. to supply Akelco with electricity. The power plant utilizes biomass coming from agricultural wastes like rice hull, rice straw, and coconut husk to turn gas turbines and generate electricity.

Mr. Chito R. Peralta, Gen. Manager in his annual report gave the power supply situation. He presented power demand in the Visayas Grid composed of Leyte–Samar and Cebu–Negros, and Panay. He said that data for last two months indicate that there is overall deficit of 42.2 percent in power supply vis-à-vis demand requirements of residential, commercial, and industrial establishments in the region. In addition power demand steadily grows at 3.5 percent per year. Peralta also mentioned Panay has total rated capacity of 141.5 MW only, while the need is 205 MW.

Peralta appealed to the member consumers for their utmost cooperation and understanding as the coop withers this un-precedented crisis. Citing latest threat was typhoon Frank which damaged electrical installations, equipment and buildings to P110 million. Fortunately "Task Force Kapatid", composed of Federated members of Electric Coop numbering 10 came to rescue Akelco bringing their own men and equipment. They are unsung heroes in our rehabilitation efforts to establish normalcy in our lives according to Peralta.

Upon evaluation, Peralta said the cost of rehabilitation drastically went down from P110 million to P65 million or a savings of P45 million. He added that the restoration of power in major service areas like Kalibo and Numancia was done within a month and a half after that fateful June 21.

Presently, Akelco boosts of 103,306 member consumers. It has 278 regular employees on its 37th year of existence. It has recently elected and installed three BOD’s in District I (Malay and Buruanga), District VI (Lezo and Malinao) and District II (Pandan and Libertad). Bearing Class A status, it has recently installed a 30 MVA substation in Boracay that caters to the tourist industry especially high end hotels, beach resorts and business establishments.

Issues and concerns raised were on abrupt notice of termination of contract by Napocor which expires barely two weeks from now. Peralta said, the original schedule year of termination is 2011. However, based on resolution of BOD, first notice of termination was received in December 2008. Hence, they appealed the matter to Napocor for postponement until such time that local firm could negotiate for a reliable independent power producer. Fortunately, they had contracted ASEA One Power Corp. but putting out plant facilities would take at lest two years from now.

Pertinent question is why Akelco despite its resources and competent staff miserably failed to anticipate the present and future need of power in the province and the tourism industry in Boracay? Negligence and apathy by officials of this utility firm has unduly jeopardized interest and welfare of its consumer members. Reper-cussions will be on increased power rates and intermittent brownouts and blackouts that will destabilize peace and security.

Mr. Chito Peralta ensconced in high office must be given a personal copy of the Electric Cooperative commandment conspi-cuously posted on the wall of its corridors in Lezo and Andagao. It states, "Thou shall protect the rights and interest of coop members with your whole heart in absolute honesty, maximum efficiency, and total solidarity." Most likely, the hardest thing to open is a closed mind. /MP

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