Pampanga cooperative eyes Korean aid in power rehab

MABALACAT, Pampanga — Faced with huge problems caused by years of neglect, the Pampanga Electric Cooperative 2 (Pelco 2) is eyeing the help of Korean Electronics in upgrading its facilities which serve some 99,000 households.

This was announced by former rebel leader Rodolfo Salas, who is now the head of the central executive committee of Pelco 2, which was formed out of the merger of three electric cooperatives in the province.

"We still have to come out with the terms, but we really need outside help to be able to upgrade all these facilities. My estimate is that a full upgrading could cost as much as P250 million," said Salas, who was known as Kumander Bilog during his stint as chief of the New People’s Army in the 1980s.

While Salas was appointed by the National Electrification Administration (NEA) to head the merged and indebted cooperatives effective last Oct. 24, officials of Pelco 1 have refused to give way and defied the NEA order for the merger and entered into a management service contract with the Philippine Power Distributors Investment Corp. (PPDIC) purportedly to lower systems losses from 26 per cent to 14 per cent, improve bill collection efficiency from 86 per cent to 95 per cent, and rehabilitate equipment and facilities as sub-stations.

However, consumers belonging to the Pelco 1 Members-Consumers Coordinating Council (PMCCC) described the move as "disadvantageous". This was after Pelco 1 board member Ponciano Dizon said that the 2.5 percent share the PPDIC wants from gross revenues was "unfair" to the cooperative.

Salas’ central management team was given 100 days to "rescue and rehabilitate" the three electric cooperatives which taps power from the National Power Corp. (Napocor) for distribution to some 200,000 households in Pampanga.

At Pelco 2, he preempted a power cut off by Napocor by paying Pelco 2 arrears through massive collection of bills, which raised P46 million in a span of two weeks.

Consumers in Mabalacat have expressed support for Salas, as they noted that frequent and unannounced power failures have barred many investors from locating in their town and have relocated to neighboring Angeles City, which is served by a privately-owned power firm. — Ding Cervantes