Entrepreneurial Farmer

Ambrosio R. Villorente

Akelco’s Financial State

Is Aklan Electric Cooperative (AKELCO) in a sound financial state?

Going over the “Independent Auditors’ Report” for the year 2012 operations, made by Balicas, Lamboso & Co, Certified Public Accountants, the following figures are noticed. 

1. In 2012, Akelco generated a total revenue of P1,935,486,682. However, it spent P1,944, 233,406. Subtracting the total expenses from the total revenue, it is minus P8,746,724. This 2012 operations loss is seven times smaller than the 2011 operation loss of P62,584,807.

2. In 2012, Akelco’s total current assets is P971,567,239. It is balanced as its total current liabilities is also P971,567,239.

3. However, its accumulated losses are huge P760,431,675 as of 2012. Did ever Akelco reported a net surplus? Never. What an incompetent management! 

It must be stated that Akelco has a monopoly as it has exclusive franchise in electricity distribution and sales in Aklan and two municipalities of Antique. Yet it is losing annually in its operation.

Electrical Bill

It is hard to believe why Akelco losses in its operation when in its monthly electric bill, Akelco charges for 25 sub items in seven major items which are: 1. Generation and Transmission, 2. Distributions, 3. Supply Charges, 4. Metering charges, 5. Universal Charges, 6. Expanded Value Added Tax, and 7. Other Charges.

The Akelco members pay EVAT for generation, transmission, distribution, and systems loss. Not only that, the consumers pay P0.80 per KWH systems loss. Here, the consumer pay Akelco for its incompetence in management. Akelco losses its product and charge the consumers of what they lost including the EVAT. For the monthly meter reading, consumers pay Akelco P0.43 per KWH. 

What is the difference between “Transmission System charge and Distribution System Charge?” This appears to be one and the same. 

Moreover, Akelco compels the consumers to pay the Senior Citizen discount at the rate of P0.70 per KWH.

Nevertheless, there is one good thing in Akelco. It’s management and staff appear progressive while the consumer members pay one of the highest prices of electricity in the Philippines, experience darkness once in a while, pay the Sr. Citizen Discount and Systems losses brought about by Akelco’s inability to prevent it. 

With this financial situation, is Akelco financially sound?

PAG-IBIG Gives P32M Calamity Aid

The Pag-IBIG Fund has approved P32 million in calamity loans in Zamboanga as of September 30.

It has also approved loans of some 1,732 members affected by the conflict in Zamboanga, with 4,000 applications under processed.

With Zamboanga placed under a state of calamity, the Fund is also offering a 3-month moratorium on housing loan payments to borrowers whose properties mortgaged with Pag-IBIG have been damaged in the armed conflict or whose primary source of income has been impaired as a result of the crisis.

“We have five areas of concern in Zamboanga: Rio Hondo, Sta. Catalina, Sta. Barbara, Kasanyangan and Mariki. We have identified 95 properties worth P76 million that are located in these areas. We hope to come up with the actual number of units affected as soon as our appraisers are allowed to enter the still-restricted areas and conduct ocular inspection,” said Pag-IBIG CEO Atty. Darlene Marie Berberabe.

Housing loan borrowers may apply for the 3-month moratorium so long as their loan account is updated as of the month prior to the declaration of the calamity. They may file their applications at the Pag-IBIG Zamboanga office located at the Pag-IBIG Fund Building, San Jose Road, Baliwasan, Zamboanga City.

Earlier, the National Home Mortgage Finance Corporation also implemented a 6-month moratorium on the amortization of payments for borrowers affected by the Zamboanga conflict.

The NHMFC moratorium will start from November 1, 2013 to April 30, 2014. Borrowers should file their application for moratorium not later than October 31, 2013. /MP