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Abreco strikes deal with supplier, assures power on election day

By Artemio Dumlao (philstar.com)

BANGUED, Abra – Fears of a no-power election day on May was doused with Abra Electric Cooperative (Abreco) forging a new power supply agreement with Aboitiz Power Renewables, Inc. (Apri).

This came after Apri issued a notice of disconnection dated Jan. 29 advising Abreco of the disconnection from the grid because of the termination of its Power Supply Agreement on Jan. 20.

The notice of disconnection is supposed to take effect on Feb. 7, but Abreco claimed it did not receive it.

But Abreco officials, led by general manager Loreto Seares, Jr., managed to get an appointment with Apri account executive Rehnie Sicat last Jan. 29 and started to negotiate with a new Power Supply Agreement.

Abreco Board President David Guzman tried his best to convince Sicat to give the power cooperative better and more flexible terms and conditions, particularly in the mode of payment of the monthly bills, but Apri maintained its position that Abreco pays P4 million in Jan. 31, another P4 million on Feb. 7, another P4 million on Feb. 14 and the last P4 million on Feb. 21.

“We are trying our very best to meet the demands in the name of our consumers,” he said.

Abreco has been at the end of criticisms in the past because of power outages that were reportedly mostly laced with political maneuverings out to discredit the power cooperative’s officials to remove them.

Seares said Abreco nailed down an agreement with Apri on Jan. 30 (Wednesday) despite all these and apparent difficult requisites imposed on them.

Supply agreements will have to be on a monthly basis as required by Apri, Seares said.


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11 thoughts on “Abreco strikes deal with supplier, assures power on election day

  1. it is but only natural for a supplier (apri) to imposed stiffer requirements for abreco’s bad credit line. they (abreco) are still lucky that apri considered a second chance despite the very bad financial dealings with abreco. i heard david guzman’s radio interview over dzpa, abrenos are not that stupid to digest the explanation you have made, you keep on fooling us. who gave you and jun seares permission to sign a new contract with aboitiz again without consulting us consumers? your desperate moves will just lead the cooperative into a more horrifying situation in the coming days, mark my word!

    Posted by watersnake | February 4, 2013, 12:23 am
  2. is it true that DOE Sec.Petilla favored Abreco GM Jun Seares over the tandem of Gov. Bersamin and his wife in a meeting this morning that was attended by all stakeholders? i heard from a BOD Member who attended the meeting that:
    1. Abreco prsented during the meeting the Financial Rehabilitation Plan on Psalm Loan Restructuring;
    2. Second Power Supply Agreement with APRI was finetuned with better mode of payment to incorporate payments to NGCP;
    3. On the governor and his wife’s call for the general manager to step down, DOE mediated to acompromise giving the general manger 3 months to satisfactorily comply wih the revised mode of payment on the Psalm and NGCP bills.
    Also during the meeting, it DOE guaranteed that THERE WILL BE NO BROWNOUT FOR 3 MONTHS. If Abreco can pay all bills on time, no Notice of Disconnection. If a Notice of Disconnection is forthcoming ON A DAY BEFORE THE IMPLEMENTATION OF DISCONNECTION, THE ENERGY DEPARTMENT STEPS IN TO RUN THE COOPERATIVE IN ORDER TO AVERT THE OCCURRENCE OF BROWNOUT.

    Also from the grapevine, a press conference by the abreco is forthcoming for the official announcement and some revelations that transpired during the meeting presided over by the energy secretary…

    hoping against hope that this will start a new beginning for our electric cooperative.

    Posted by observer | February 4, 2013, 2:17 am
    • Hoping against hope that DOE will step-in to run the Cooperative, you mean permanent basis or until the cooperative would be able to stand up again with its own feet? Praying that it would be permanent, what are the processes involved in creating their “new fresh Management Team” which include hiring for entry level positions? Would it be influenced by politics again or respecting this time the existence of regulations embodied to our civil service laws for the benefit of those who passed government exams applicable herewith?
      Otherwise, If DOE/NEA or us will allow politicians to reign or intervene, I can no longer imagine what kind of future sufferings we have to deal with again. Poor Abrenians, always the ultimate victims of power and GREED!

      Posted by prince wan | February 4, 2013, 1:33 pm
  3. DOE steps into electric coop’s debt mess, as Abra risks slipping from brownouts to bloodshed
    By: Michelle Orosa-Ople, News5
    February 4, 2013 5:53 PM

    The online news portal of TV5

    MANILA – As the mid-term polls draw near, the Department of Energy (DOE) has put together a make-or-break deal between debt-saddled Abra Electric Cooperative (Abreco) and its creditors to avert power outages that would plunge a perennial election hotspot into certain bloodshed.

    Energy Secretary Jericho Petilla said the department would do everything in its power — short of paying Abreco’s debts — to ensure the province is spared from further brownouts.

    “I will make sure they have electricity. I will find a way to ensure they have power during the election period,” said Petilla, who, as former Leyte governor, knows how deadly local politics can turn out.

    “Historically it has always been declared a hotspot so even without elections, there are reports of violence in the area, and the last thing we want is a sustained power failure,” the DOE chief said.

    Abreco is knee-deep in debt after repeatedly failing to pay AP Renewables Inc as well as the National Grid Corp of the Philippines (NGCP), which connects the cooperative to the power plant operator. This has forced the government — both at the national and local levels — to step in.

    According to the DOE, Abreco’s debt has ballooned to P400 million, including P355 million owed to state-run Power Sector Assets and Liabilities Management Corp (Psalm), P27 million to state-owned National Electrification Administration (NEA), and P12 million to the Bureau of Internal Revenue (BIR), among other government agencies.

    Abra was cut off from the power grid for 24 hours on December 10, and for 5 hours on January 24.

    “Basically the problem is not because of lack of power but more because they have a problem with payment. The only reason they have power now is because LGU-Abra paid P4.7 million. But they also said they cannot keep paying the arrears of Abreco, and that’s why on the next disconnection, Abreco is running out of options,” Petilla said.

    The DOE has met with representatives of Abreco, AP Renewables, NGCP, the Energy Regulatory Commission, among other stakeholders — all of which agreed to place the electric cooperative under rehabilitation.

    Also, Abreco and AP Renewables signed a new power supply agreement that would expire every month.

    A subsidiary of Aboitiz Power Corp, AP Renewables also agreed to restructure payments, P4 million of which should be made on the 18th, 22nd, 26th and 30th of every month so Abreco can still enjoy access to electricity.

    Likewise, NGCP agreed to a new schedule of payments by Abreco: P1.5 million every 20th and 24th of the month, and P3 million every 25th.

    In turn, Abreco agreed to trim by half its P10.4-million operating expenses by retrenching workers, who number 400. According to the DOE, the cooperative should maintain a workforce no more than 140 since the utility distributes only 8 megawatts of electricity.

    Abreco’s rehabilitation would run for three months, failing which the cooperative agreed to let the DOE take over management of the utility.

    “DOE will be sending an observer to make sure the payments are being made and to inform us ahead if there are problems,” said Petilla.

    “My take is let’s stabilize the financial statement first, complete the rehab and then talk about debts,” he said.

    Petilla however ruled out any bailout as this would set a bad precedent, especially since Abreco is only one of many rural cooperatives that are drowning in debt.

    “This has been going on a long time. The last thing we want to do is tuck this in again,” he said.

    Posted by cristela | February 4, 2013, 3:55 am
  4. “DOE taking over” excellent News, but still short of an action. Better take out the GM and send somebody who is knowledgeble on the Biznez.

    Posted by Kipit | February 4, 2013, 8:24 am
  5. La annia ngarud Kipit, Adu ti managers nga nalalaing tayo ditoy ABRA kasla ken Madam Leah ti Water District ken Engr. Irene ti ADTEMCO. Daguita ti paguadan a Managers, narang-ay ti panangimaton da. Apay kuma no boludem ti maysa kanyada Gov. Takit nga mangsukat iti dayta manugang mo, tapno lumung-aw ti adda a kasasaad ti ABRECO. Gov. Takit tested daguitoy a dua. Suggestion lang apo take it bulsamin.

    Posted by Kipit | February 4, 2013, 9:12 pm
  6. apay kipit kukuwestionaram met ta bagim? baliwam ta nagan mo a tapnu haan nga madlaw

    Posted by kipit | February 5, 2013, 1:54 am
  7. Pardi kan Kipit tinulad da ta nagan mon, sika sa met amin dayta?

    Posted by Jingo | February 5, 2013, 8:44 am
  8. Seares said Abreco nailed down an agreement with Apri on Jan. 30 (Wednesday) despite all these and apparent difficult requisites imposed on them.

    – sinno ti pabasolen ngarud mr jun seares, dayta bagim a gapuen ti kina corrupt ken panangmismanagemo ngamin awan met ammon.

    Supply agreements will have to be on a monthly basis as required by Apri, Seares said.

    – daytoy tatta ania ti epekto na agpangato ti singir ti kuryente kada bulan gapuen ta on a monthly basis isingir to lattan ti APRI diay kayat da a presyo ti kuryente(agdepende daytoyen ti supply and demand), ket daytoy ipass-on yo kadakami a consumers. rigat latta manager ti umay kadakami aglalo kadakami a babassit a residetial consumers.

    Posted by jepoy | February 11, 2013, 6:44 am

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