Unpaid bill: Entire Philippine province left in the dark

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power-blackoutAn entire province in the Philippines, Albay in southeastern Luzon Island, is experiencing a power blackout after the national power grid operator cut off supply because of accumulated debt of $93 million the Albay Electric Cooperative, (Aleco) owed various creditors.

The blackout began at noon on July 30 without warning,  surprising 1.2 million residents of Albay province.. Shops had to close and hospitals and offices are running on generators.

Albay Governor Joey Salceda said he was “working to resolve the problem”, which means paying at least the latest bill, and promised to restore electricity within two days.

However, the Philippine Department of Energy said that a disconnection notice had been served beforehand to Aleco because it failed to pay its bills over 15 years. It asked Alceo to outline a rehabilitation plan to address its ballooning debt. The cooperative said it is currently unable to settle the bills as it incurred big losses in 2011, which observer blame on mismanagement, a high systems loss rate and dilapidated infrastructure.

Alceo avoided a province-wide disconnection in June 2013 by promising to raise funds, but failed to do so.

 

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Reading Time: 1 minute

An entire province in the Philippines, Albay in southeastern Luzon Island, is experiencing a power blackout after the national power grid operator cut off supply because of accumulated debt of $93 million the Albay Electric Cooperative, (Aleco) owed various creditors.

Reading Time: 1 minute

power-blackoutAn entire province in the Philippines, Albay in southeastern Luzon Island, is experiencing a power blackout after the national power grid operator cut off supply because of accumulated debt of $93 million the Albay Electric Cooperative, (Aleco) owed various creditors.

The blackout began at noon on July 30 without warning,  surprising 1.2 million residents of Albay province.. Shops had to close and hospitals and offices are running on generators.

Albay Governor Joey Salceda said he was “working to resolve the problem”, which means paying at least the latest bill, and promised to restore electricity within two days.

However, the Philippine Department of Energy said that a disconnection notice had been served beforehand to Aleco because it failed to pay its bills over 15 years. It asked Alceo to outline a rehabilitation plan to address its ballooning debt. The cooperative said it is currently unable to settle the bills as it incurred big losses in 2011, which observer blame on mismanagement, a high systems loss rate and dilapidated infrastructure.

Alceo avoided a province-wide disconnection in June 2013 by promising to raise funds, but failed to do so.

 

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