DoE aids indebted electric coops
Energy Secretary Carlos Jericho Petilla. INQUIRER FILE PHOTO
Manila, Philippines—Energy Secretary Carlos Jericho Petilla on Tuesday said the Department of Energy was aiding indebted electric cooperatives to ensure continued power supply for residents.
“In electric cooperatives we cannot afford any single one to fail,” Petilla told the Senate Finance sub-committee as he presented the agency’s proposed 2014 budget.
He said about 12 out of 120 or more distribution utilities were “ailing” and burdened with large debts totaling an estimated P30 billion.
“In the past, because the debts are so large, no one wants to face it…They pass it on to the next administration…But we’re here to do the right thing,” he said.
Petilla said the energy department focuses on the financial and social aspects of the problem to come up with a solution while “isolating” the political issue because he believes that “behind every ailing cooperative is a politician.”
Senator Sergio Osmena III, who chairs the sub-committee, agreed, explaining how “local lords” try to control the cooperatives for their own benefit.
Petilla then narrated the case of Albay Electric Cooperative (Aleco), which briefly experienced a power outage a few months ago because of its inability to pay its P3.6 billion debt.
A number of investors backed out from the bidding of Aleco because they were unwilling to spend billions just to “buy debts,” in addition to other requirements, resulting in a lone bidder — San Miguel Corp. – Global Holding Corp., he said.
The agency is now looking forward to the revival of Aleco after a recent referendum decided that a private firm, instead of another cooperative, take over its functions.
Petilla said the DoE aims to give “direction” to all of the cooperatives by the end of the year.
