Govt takeover of Aleco relieves Albay coco oil mill

Reports of a government takeover of Albay’s exclusive power distributor, which has been saddled by P1.134 billion in debt, have boosted the confidence of the country’s biggest coconut oil mill in Bicol to sustain its operations. Jesus Arranza, president of Legaspi Oil Co., Inc., on Monday said the National Electrification Administration (NEA) will take over the operations of the Albay Electric Cooperative (ALECO), which owes the National Power Corp. over P1 billion as of last month. Arranza said the National Grid Corporation of the Philippines had announced it will cut the power supply of Albay Electric, alarming consumers, manufacturers, and producers. ALECO, the exclusive franchise holder and power distributor in Albay, purchases its power requirements through the Luzon grid. An agency of the Department of Energy, NEA is authorized to fix rates and to grant and revoke franchises. “We were afraid that if ALECO will stop operating, we, too, will temporarily stop our operations for lack of power," said Arranza, adding that thousands of copra producers in Albay and Masbate depend on Legaspi Oil for their livelihood. Arranza had written Energy Secretary Jose Almendras last August, saying that NEA should take over ALECO to prevent power outages and assure consumers of continued power supply. The Legaspi Oil president said the takeover will allow the company to accept daily copra deliveries from thousands of coconut farmers in Bicol. Legaspi Oil operates a coconut oil mill in Legazpi City with a daily crushing capacity of 300 metric tons. — With Paterno Esmaquel II/VS, GMA News