The Albay Electric Cooperative (Aleco) is once again flashing its distress signal – threats of brownouts. Calls mounted for the resignation of the members of the Aleco Board their inefficiency to curb the growing debt of the electric cooperative (EC) which is now pegged at P3.2 billion. Will Aleco never get out of its mess?
Reductionism states that since the problem of Aleco is its debts, the simplest solution is to pay the same. To do that, the public utility must be efficient in its operations, a task that lies in the hands of the general manager. If efficiency is not attained, then the general manager should be replaced.
Because of this simplistic approach, Aleco replaced its general managers 12 times since its organization in 1991. This is as opposed to good performing electric EC’s like Bohol Electric Cooperative-I with only 5 general managers since 1971, and the Cebu Electric Cooperative III with only 3 general managers since 1979. The collection efficiency of these coops is 100% while systems losses range between 7%-10% only. Aleco, meanwhile, has an average collection efficiency rate of 88% and an average systems loss of 25%.
Of course, it can be said that the turnover of general managers is a function of their qualifications and ability. Poor general managers need to be replaced while performing ones need to be retained. But hiring a general manager for six months or one year, though, is a different story as the said period may not be enough to develop and implement a plan or sustain a program that is supposed to address the electric utility’s woes. Second, even if the general managers hired are highly competent, managing Aleco will be very tough because as the study conducted by the consulting team organized with the aid of Catholic Bishop Jose Sorra in 2003, the electric coop’s financial situation and technical capabilities are not sufficient to provide the electricity requirements of Aleco for the year 2004 and onwards. In a simple terms, the solution to Aleco’s woes will not be solved by simply replacing its managers.
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