LEGAZPI CITY, Philippines – Members of the Albay Electric Cooperative (Aleco) prefer privatization rather than allow another electric cooperative to rehabilitate the water utility, which is saddled with at least P4 billion in debts.
In a referendum last Saturday participated in by 9,004 Aleco consumers, 5,506 voted for privatization while 3,491 wanted a cooperative-to-cooperative partnership.
Those who joined the referendum came from three districts represented by the cities of Tabaco, Legazpi and Ligao.
The referendum had a low turnout as only 2,495 of the 63,579 Aleco members in the first district (Tabaco City) or 3.92 percent voted; 3,368 of the 84,992 members or 3.92 percent in the second district (Legazpi City); and 3,141 of the 74,031 members or 4.24 percent in the third district (Ligao City).
Albay Gov. Joey Salceda thanked San Miguel Corp.-Global Holding Corp. (SMC-GHC), which was the lone bidder for Aleco, before the referendum.
“Good luck to SMC. Since SMC is the biggest supplier of electricity in Luzon and has P245 billion in capital, it does deserve the assistance of the local government unit,†Salceda said.
“The role of the provincial government is clearer, more limited and more appropriate to our institutional capacity and to our economic and developmental mandate,†he said.
“Overall, we are pretty much set up to serve as a gatekeeper. We will step in only in two cases: firstly, to improve quality of service (transformers, downtime reduction, implementation of sitio energization), and secondly, to oppose all upward adjustments in distribution charges filed in the Energy Regulatory Commission to safeguard consumer welfare,†he added.
Salceda hailed the upcoming takeover of SMC to stop threats of blackouts in Albay, saying a stable electric supply is needed to support the province’s aggressive tourism promotions such as the Asia-Pacific Economic Cooperation 2015 Forum and the Southern Luzon International Airport that will be completed in 2015.