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Philippine province suffers power cut over unpaid bills

Published: 01 Aug 2013 - 03:10 am | Last Updated: 02 Feb 2022 - 02:02 pm

MANILA: About one million people in the Philippines endured an extraordinary blackout yesterday after a power provider cut electricity to an entire province over unpaid debts dating back 15 years.

Hospitals, hotels and an airport in Albay province were forced to run on emergency generators after power was severed on Tuesday afternoon, while businesses closed and residents struggled amid steamy, tropical weather.

The country’s electricity spot market operator cut off the power to Albay’s electricity retailer because of about P4bn ($93m) in bills that had accumulated over 15 years, the national government said. The retailer, Albay Electric Co-Operative, is collectively owned by all power consumers in the province.

Local and national government officials accused Albay Electric’s board of gross mismanagement in accumulating the debts.

The president of the national power provider, Philippine Electricity Market Corporation (PEMCI), said it had been forced to take the drastic action after years of unsuccessful negotiations with Albay Electric.

Electricity supplies resumed to most residents in the province at 5 pm yesterday after negotiations between PEMCI and Albay Electric Co-Operative that were brokered by Energy Secretary Jericho Petilla. But the 100 biggest consumers, including hotels, factories and department stores, were still cut off.

And PEMCI president Melinda Ocampo said power to the whole province would be turned off again in seven days unless Albay Electric began repaying its debt. 

“If they cannot pay then we will cut them off,” Ocampo said.

AFP