Entrepreneurial Farmer

Ambrosio R. Villorente

Akelco Rates 69, The Lowest

Akelco is rated 69 by National Electrification Administration (NEA) for the year 2008. This is the lowest rate among the nine (9) electric coope-ratives in Western Visayas. Translated to color code, it is yellow.

This rate of 69 explains why the doings in Akelco is being discussed often over the airlanes and in local newspapers. It must be remembered that in the promotion of public image, the most effective method is by excellent performance. Favorable public percep-tion on an individual, thing, and organization is achieved by excellent performance.

With the lowest rate among the nine (9) electric cooperatives in Region VI and at rate 69 Akelco got, it really has negative image. Akelco being a public utility office and owned by the people, media has solemn duty to inform the people of the doings in Akelco.

It must be inculcated in our minds that the "people has the right to know of the things that concern them". Majority of the Aklan tri-media has been informing the people of Aklan of the Akelco doings both positive and negative. Positive performances are being praised while negative performances are discussed, analyzed. Even unsolicited possible remedies are suggested.

However, it is not possible for any member of the Aklan tri-media to accept bribes in order for them to glamorize the briber or to report malicious imputation upon any official, public or private for a fee.

ERC Conducts Public Hearing In Akelco

More than 200 member-consumers of the Aklan Electric Coope-rative, Inc. (AKELCO) attended the Public Hearing conducted by the Energy Regulatory Commission (ERC) with regard to the Rules for Setting the Electric Cooperatives’ Wheeling Rates (RSEC-WR) or benchmarking of rates of electric cooperatives (ECs), Tuesday afternoon, June 30, at the Job Y. Besana Hall, AKELCO Compound, Lezo, Aklan.

ERC personnel who came over were ERC Commissioner Jose C. Reyes, ERC staff members, Genna C. Mariñas and Cristy B. Dueñas, reported Ms. Lovell Gepte-Juliano.

Majority of the AKELCO board of directors led by President Jose Carl C. Quimpo and General Manager Chito R. Peralta and the AKELCO partners and associates attended the said public hearing.

Commissioner Reyes presided the hearing. He explained the new rate-setting methodology for Electric Cooperatives which aims to introduce tariff-setting methodology that is more responsive to the EC’s needs; provide incentives to improve efficiency and have the gains shared to its consumers; and reduce the regulatory burden of sector regulation.

Under section 3 of the Electric Power Industry Reform Act (EPIRA), the ERC may adopt alternative forms of internationally-accepted rate setting methodology as it may deem appropriate. The rate setting methodology so adopted and applied must ensure a reasonable price of electricity.

On their presentation, 98 ECs nationwide were classified into groups. Akelco belonged to Group E that comprises 50-100,000 consumers. Akelco then presented to the public the impact on rates based under the regulatory framework rate methodology called Standard Initial Tariff (SIT) against the current implemented rate.

Furthermore, Akelco sought for the additional member’s contribution for its ERC approved capital expenditure as well as for its projected capital expenditure for the next three years.

In developing the new rate setting methodology, ERC intends to promote efficiency, improve quality service, reduce electricity costs and to provide reasonable rates thus, the new rates will be commensurate with the performance of an EC like Akelco because they will monitor the ECs based on their assessment of their operation as basis for either lowering or increasing the rate.

Commissioner Jose Reyes said, years 2008 to 2011 are the transition period for the increase of electricity rates as per ERC ruling. The gradual shift is determined by the performance of the electric cooperative. /MP