by ERNESTO T. SOLIDUM
Atty. IMMANUEL "Noli" SODUSTA - president, Board of Directors of Akelco; Atty. Romeo Inocencio of Power Aklan; and Hon. Ramon Gelito - Aklan SP member are the guests during the Oct. 3 Kapehan Sa Aklan.
The weekly Kapehan forum on Saturday, Oct. 3, 2009 tackled the topic "Aklan Electricity". Atty. Noli Sodusta, president, Board of Directors (BOD), Akelco, Atty. Romeo Inocencio, former SP member and crusader for good governance and SP member Andoy Gelito were the resource persons.
Atty. Sodusta gave an overall perspective of Akelco’s plan and program particularly on its highly controversial independent power producer Panay Power Corp. (PPC) a.k.a. Mirant Global Business Corp. and the impending critical transition phase. "Akelco’s contract with Napocor (now privatized) will expire on December 5, 2009. Hence, concerted efforts to seek other power sources" must be done, Sodusta urged.
The Akelco BOD president bared that PPC with intervention from National Electrification Administration (NEA) had reduced the minimum energy uptake (MEUT) to its financial condition from red ink to black. If the trend continues, the firm is qualified for Class A plus status, a prestigious title NEA conferred upon its 119 accredited organizations. The basis is efficient collection – 99.14 percent and low systems losses – 12.06 percent.
In compliance with EPIRA law, Akelco entered into a contract early this year with Asea power One Corp which would generate 12 MW using biomass. The cost is much lower than the P4.70 per kilowatt hour since power plant to be located in Banga will utilize agricultural wastes like rice hull, rice straw, coco husk and all other farm waste rather than bunker fuel.
Other prospects being eyed are coal fired power plant in Iloilo with capacity of 164 MW and the four mini hydro electric plants to be established in the hinterlands of Libacao. Quoted coal fired generation cost is P8.423/KWH for residential, P7.69/KWH– commercial, and P7.91/KWH –industrial. The recent development is tapping wind energy that could further boost Panay’s power potentials to self sufficiency in next decade.
The latest plan of Akelco to increase capital build-up or members’ equity is bound to generate P144 million through inclusions in the monthly consumer billings.
Atty. Inocencio noted that Akelco’s management since it started operating 37 years ago has been characterized by secrecy, arrogance, and indiscretion. Virtually, it has sustained huge financial losses with dramatic increase of 14 percent in customer billing for its services from years 2008 to 2009.
The former SP member Inocencio underscored that Akelco contracted Asea Power One Corp in Feb. 2009 to supply power in the coverage area. Yet it is only lately that public consultation was held.
In 2006, Akelco entered into a contract with Mirant out of consideration that a 25 percent power shortage is imminent in Aklan. Atty Inocencio is puzzled why original stipulated consumer price was abrogated without public consultation and that the presumed power crisis did not exist in the first place. For the benefit of the doubt that Mirant is able to provide a respec-table form of service, it is important to address power demand fluctuation and power outages, Inocencio suggested.
Data show that in 2008, Mirant under the MEUT provisions was able to secure payment for its 48 million KWH a year despite consumption of only 5.6 million KWH or 1.01 percent for the period. This means an overpayment of P100 million which explains the 14 percent increase, an object of ridicule from other Napocor subscribers.
The paramount issue and concern are the dominance of elite group of bureaucrats in the power firm who do not subscribe to the normal rules of accountability, and transparency. Dr. Ambrosio R. Villorente emphasized that while Akelco belongs to Aklan and Northwestern Antique member consumers yet contracts are executed by management without their knowledge and consent. Not contented of hiding the power contracts from the eyes, ears, and noses of the consumer members, Akelco BOD added the provision of "confidentiality" in the latest contract signed.
Putting the cart before the horse is obviously a stupid idea. Yet Akelco signed a contract with Asea Power One Corp without the benefit of a public consultation. It appears that its officials are only obsessed with power and oblivious to the reality that real power resides in the member consumers.
Are they beyond reproach or immune to public censure? Practically member consumers are increasingly alienated and outraged by sky-rocketing billing charges and power outages while Akelco personnel enjoy high pay scale and fringe benefits. These believe the cooperative principle for management to embrace democratic principles and be service – oriented.
Ironically, Akelco is not really a cooperative since it is not registered with Cooperatives Development Authority (CDA). It is not according to Supreme Court decision, why on earth does Akelco sanction capital build-up from its member-consumers? In the process, is Akelco stretching our patience and resilience beyond the limits?
Atty. Sodusta’s reference to Mirant’s facilities in New Washington and Nabas as standby generators (12.5MW) is inherently misplaced since for practical purposes it has never served its purpose and yet P100 million needlessly shelled out by hapless poor consumers in 2008 alone.
Considering the beleaguered condition of Akelco and strategic importance of power to our socio-economic life. An oversight committee maybe formed clothed with quasi-judicial powers to review/evaluate contracts executed by Akelco Board of Directors. It may conduct comprehensive review of Akelco official acts.
Presently, it is premature to judge Akelco’s decision to source part of its power requirements from Asea Power One Corp knowing that the plant may be operational only in 2011. However, based on existing data, rice hull as main power source is generated only by small rice millers compared to big commercial millers in Iloilo. Furthermore, biomass power plants spew large quantities of carbon dioxide into the atmosphere and most likely create a huge stockpile of biomass material inside its facility.
The race is on to satisfy the 29 MW present requirement of Aklan. This is bound to increase in the coming years. Indeed filling the vacuum to be left by Napocor can be challenging in terms of selecting the least power cost service provider, reliability and most eco friendly. Fortunately, this is now within our reach.
For Akelco BOD and management, disclosure of all the information that pertains to consumer members is necessary. Confidentiality of matters concerning Akelco consumer members invites suspicion and betrayal. /MP
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