ALBAY Electric Cooperative’s (Aleco) unpaid power bills ballooned to P1.61 billion, as of end-June this year.
Data from the Department of Energy (DOE) showed the ailing electric cooperative (EC) owed market operator Philippine Electricity Market Corp. (PEMC) P1.107 billion. Arrears amounted to P982.84 million, while current payable account reached P124.9 million.
Aleco also owes Power Sector Assets and Liabilities Management Corp. P2.32 million. The same data showed Aleco has unpaid dues to the National Grid Corp. of the Philippines amounting to P22.41 million. It also owes Aboitiz Power Renewables Inc. P29.4 million.
The DOE said it would continue to closely monitor the concerns of ailing distribution utilities and ECs to finally resolve their financial obligations and help them improve their operations.
The National Electrification Administration (NEA) has classified Aleco in 2015 as one of the ailing ECs based on its “financial and operational parameters, which are not complied with under Republic Act 10531 guidelines.” As per its latest submission of data on April 30, Aleco has insufficient cash to cover the one-month working capital for power and nonpower cost. Its collection efficiency is only 84.43 percent, which is below the 95-percent standard of NEA.
Aleco’s net worth is negative P76.254 million, while liabilities stood at almost P2.731 billion.
Aleco also posted a systems loss of 20.46 percent, higher than the 13-percent systems loss cap.
Aleco is now being run by the Albay Power and Energy Corp. (APEC), a subsidiary of San Miguel Corp.
The DOE said Aleco Operations Manager Gerard Balgemino informed the agency that the concession agreement is sufficient for PEMC to defer the payment arrears amounting to P 1.24 billion.
“On APEC’s current arrears in the amount of P78.678 million, APEC sent a request for restructuring of their current power payables with payment terms of 12 months starting March 15, on top of their current bills,” the DOE said.