The Albay Renewable Energy Alliance (AREA) strongly voiced opposition to the planned reprivatization of the Albay Electric Cooperative (ALECO), warning that returning the cooperative to private control would repeat past failures and further burden Albayanos.
In a press conference today, September 12, AREA convenors recalled that ALECO was first privatized in 2014 under San Miguel Corporation–Albay Power Energy Corporation with the promise of solving its ballooning debts, rampant corruption, and unreliable power supply. Instead, they said, the cooperative’s debt nearly doubled to Php 9.9 billion, while consumers continued to suffer frequent brownouts, low voltage, and rising electricity prices. These failures, according to the group, eventually pushed Albayanos to terminate the 25-year concession agreement with APEC-SMC in 2022.
Although ALECO remains saddled with heavy debt, AREA noted that under its current management appointed by the National Electrification Administration (NEA), there have been improvements in collection efficiency, reduced system loss, and fewer brownouts. Still, the group emphasized that ALECO’s problems require collective solutions rather than a return to private control. “Privatization is not the solution. We need a democratic and people-led rehabilitation of ALECO,” said Felix Ador, spokesperson of AREA.
The Alliance also criticized reports linking Albay 2nd District Congressman Caloy Loria to efforts to privatize ALECO. Loria, however, denied that he filed a bill for privatization, clarifying in an interview with BicoldotPH that what he filed was a congressional resolution. “House bill? No, there’s no such House bill [on] privatization of ALECO. It is a resolution regarding inquiry, congressional inquiry about ALECO. I filed a resolution before the Energy Committee. I am a member of the Energy, requesting the good committee to conduct a congressional inquiry [on the] status of Albay Electric Cooperative,” he said.
When asked about the purpose of the resolution, Loria explained: “Tingnan ko lang kung ano talagang problema ng ALECO. We have to discuss it before the committee.” He added that no schedule has been set for the inquiry. “Wala pa pong calendar ang inquiry,” he said.
The congressman also confirmed having met with MERALCO officials, along with Albay Governor Noel Rosal and Albay 1st district Congresswoman Krisel Lagman, but insisted that no formal agreement had been reached. “Actually, hindi ko dinideny ‘yan… They just want to share ideas kung paano maayos sana yung ALECO. But there’s no such agreement. Tinignan lang namin ni Gov kung ano naman ang pwedeng halimbawa, if ever. But the privatization issue is not yet,” Loria clarified.
According to him, his concern is to improve ALECO’s service to make Albay more attractive for investment. “Ako talaga, ang pakay ko, pagandahin talaga because foreign investor at saka yung mga [economic zones] will not be materialized if hindi pa ayos yung power natin,” he said.
Despite his clarification, AREA convenors maintained that ALECO should remain in the hands of its member-consumer-owners and that privatization is not the way forward. They reiterated their call for an independent audit, a government-backed rehabilitation plan, and a shift to renewable energy and microgrids.
“Electricity is a basic service, not a business for profit. ALECO belongs to the people of Albay and must be strengthened, not sold off,” said Dr. Rene Ofreneo, national president of the Freedom from Debt Coalition, who joined the press conference alongside Larry Pascua of the Philippine Movement for Climate Justice, Tet Triunfante of Mayon Integrated Development Alternative Services, Rosemarie Quinto-Rey, president and CEO of Southern Luzon Technological College Foundation Inc., and Angelyn Bañaga of SLTFI.
AREA concluded with a strong appeal: “No to ALECO privatization. Yes to people-led rehabilitation and renewable energy now.”
