LEGAZPI CITY, Philippines -- Power to the whole of Albay province was cut off at noon Thursday by the National Power Corp. (NPC) over a P1.4-billion debt of the Albay Electric Cooperative (Aleco).

However, electricity was restored at around 1 p.m. after Albay Governor Joey Salceda negotiated with the state-owned NPC.

Salceda said despite an agreement he reached with NPC officials Wednesday, the National Transmission Corp. (Transco) went ahead with the disconnection.

He said he appealed for the disconnection to be put on hold pending the decision of the NPC on Aleco's bid for a contract that would allow the local power utility to be managed by the government-owned firm until it is able to settle its liabilities.

The Albay governor said an operation and management contract with the NPC, with Albay being the major creditor and supplier, is the most viable and efficient solution to Aleco's financial predicament.

"Aleco is technically bankrupt. Negotiations have been ongoing and the ball is in the NPC court. A disconnection solves little," Salceda said.

On the other hand, he said a transitional NPC takeover offers some "elbow room" for rehabilitation while allowing Albay’s economy to stay afloat.

Poor collection performance and systems loss, or electricity lost and unpaid due to pilferage and defective equipment, contributed much to Aleco's financial woes.