You think that the political turmoil, illegal drugs and the killings is enough as it is to Abrenians, here’s comes another nail in the coffin. How much more misery Abrenians can take?
In an email message to abrenian.com, AP Renewables Inc. (APRI) has terminated its amended Power Supply Agreement (PSA) with the Abra Electric Cooperative (ABRECO).
APRI issued the termination notice last November 4, 2014, citing the cooperative’s consistent failure to settle its payments and failure to fulfill its commitments. ABRECO will be disconnected from APRI at 12
noon on November 17, 2014.
APRI and ABRECO first entered a PSA in December 2011. From the onset and for the duration of the original agreement, ABRECO was remiss in meeting its obligations.
ABRECO was unable to pay its bills properly – with instances of incomplete or missed payments, and bouncing checks. Other commitments that include posting of Security Deposit and enrollment in the Wholesale Electricity Spot Market (WESM) were also not realized (abrenian.com)
You can download the entire statement from here: Advisory on Abreco PSA termination 2014
UPDATE: Abra Goes Back In Total Darkness
By Artemio A. Dumlao
La Trinidad, Benguet (November 14, 2014) – Abra province goes back in total darkness starting noon Monday (November 17) as its power supplier, private independent power producer –Aboitiz Power Renewables Inc. (APRI), has terminated its amended Power Supply Agreement (PSA) with the distributor Abra Electric Cooperative (Abreco).
APRI handed out its termination notice to Abreco on November 4, 2014, citing the cooperative’s alleged consistent failure to settle its payments and failure to fulfill its commitments.
But Abreco, still reeling from the onslaught of the twin typhoons Luis and Mario that ravaged Northern Luzon in October said, it is seeking the National Electrification Administration (NEA) and the Energy department’s aid to intercede in the name of its thousands of consumers. “We will pay it but we are asking the supplier if we could pay it in trances or on a graduated basis, Abreco general manager Loreto Seares Jr. said.
Abra was declared in a state of calamity after typhoon Mario that devastated the province’s economy.
The power cooperative said it suffered very costly damages of power lines at more than P16 million. At least 24 kilometers of power distribution lines were reported damaged, 150 electric poles felled, and other equipment like transformers, kilowatt hour meters, conductors insulators and line devices destroyed. Replacements of these came from suppliers who collected on cash basis, depleting Abreco’s finances, explained Seares Jr., adding, “it was a decision we had to make in the name of the cooperative’s 30,000 consumers to have power after the twin typhoons.”
After typhoon Luis and Mario, Abreco fully restored electric in all 27 Abra towns.
But still APRI which first entered a power supply agreement wit Abreco in December 2011 insists, “from the onset and for the duration of the original agreement, Abreco was re miss in meeting its obligations,” citing the cooperarive “was unable to pay its bills properly with instances of incomplete or missed payments, and bouncing checks.” If further added that other commitments by Abreco that include posting of Security Deposit and enrollment in the Wholesale Electricity Spot Market (WESM) were also not realized.
APRI even agreed to restructure Abreco’s payables, to immediately credit the rate adjustment difference and to reschedule the posting of the required security deposit to assist the cooperative. But still, the power supplier believed, “Abreco continued to be delinquent in its contractual obligations.”
APRI said it issued a total of six disconnection notices to Abreco, but actual disconnection took effect last December 10, 2012, though power was restored after the cooperative promised to settle its commitments.
Via the intercession of the energy department and local government officials, APRI entered into an amended PSA with Abreco on February 4, 2013 that required Abreco to pay its electricity fees every 18th, 22nd, 26th, and on the 30th with no balance payable by month end. The cooperative was also required to file the PSA with the ERC, apply for direct WESM membership and post a 2-month Security Deposit.
But Abreco failed to comply, Martin Yasay, Assistant Vice President for Legal and External Affairs said as he explained that APRI, in its desire to support Abra, amended the PSA to extend all possible assistance to Abreco in its recovery which included the proposal for staggered payments on its monthly bill.
Still Abreco, APRI claimed, failed to comply. “We are concerned that Abreco’s non observance of its contractual obligations will affect APRI’s capability to effectively serve its other customers ,” Yasay said.
APRI operates the Tiwi Makban geothermal power plants in Batangas, Laguna and Albay.
But Abreco’s Seares Jr. said while much was done and continues to be undertaken with the power cooperative’s internal financial rehabilitation, they are
“determined to hurdle all this by continuing to institute internal reforms they have started since last year, in the name of the consumers and the economy of Abra”.
Abreco, while claiming it only has some P10 million more from its P16 million obligation to APRI, is now exploring remedies while priming on maintaining power at the electric lines in all 303 barangays in the province.***Artemio A. Dumlao***