From the General Manager


Christmas message and Year-end Report 2013

(Delivered during ZANECO Christmas Party on December 14, 2013 at Piñan Area Office)

Year-enders are usually delivered immediately before New Year, but since we no longer have other chance of being together except in our Christmas party today, allow me to briefly deliver my year-end accomplishment report to you and to all our member-consumers. After all, ZANECO’s accomplishments for 2013 are not just for me, ato kining mga kalampusan tanan ug niadtong pipila ka mga higala sa ZANECO kinsa wala maghikaw sa ilang tabang kanato.

Despite the invectives we received from some sectors, it turned out that this year is not really that indifferent to ZANECO. Last March 5, President Aquino signed into law Republic Act No. 10376, which condoned the interest on our paid principal account of Fuel Compensating Charge (FCC) and Incremental Cost Charge (ICC) that already reached more than half a billion pesos. The principal, which was about 30 million pesos was paid through a loan, and we are happy to announce that we already have completed the payment of that loan last May.

If we failed to have the FCC-ICC interest condoned, we would be paying it now. And even all the assets of ZANECO are not enough to recompense for it. But now, the more than a decade FCC-ICC problem is over.

We really have a lot to be thankful of. This year, the National Electrification Administration upgraded ZANECO’s rating to “A” based on our performance assessment last year.

Eight years ago ZANECO fared badly with “C rating.” But we worked and worked in silent consistency, then we moved up to “B rating” and eventually to “A rating” this year. And with all your cooperation and dedication, we hope to continue on going up to “AA rating” and finally the “AAA rating.”

Why are we so immersed with these ratings? Because this is the reflection of how we as an electric cooperative carry out our work to serve our member-consumers. This assessment deals with our financial, institutional services and technical performance. Included in the assessment is how the Board of Directors discharges its duties and responsibilities and how the present leadership managed and stirred ZANECO to what it is now today.

On the financial side, ZANECO’s strong financial posture is largely due to our collection efficiency, which is at 97.75 percent five months ago. For the first time, we impose collection quota to all our area offices this year. And, for the first time also, ZANECO’s collection has reached 1,146,383,809.93 pesos for this year.

That’s huge, but only about 10 percent of that collection will remain with ZANECO. The rest goes to our obligations and government taxes. That’s why we don’t have backlog in our account with the generation and transmission companies.

Other factors that contributed to our good financial posture are:

·         upgrading of read and bill system

·         the mobile teller system, and

·         the continuation of FIT-STORM. This is not so popular among member-consumers who don’t want to pay their electric bills, but it has to be done.

On the other hand, we have directed our billing section under Riel Abejero to exert all efforts to recover unpaid accounts with the help of our legal team. The Office of the General Manager is throwing its full support to that effort.

These unpaid accounts include that of member-consumers with outstanding obligations, but who closed their accounts and yet opened another accounts under other names. Minaro gyud.

Above all, we go after former and present officials and employees of ZANECO who still have backlog in payment of their energy consumption, labina gyud ang mga general managers kay maka-ulaw biya pud. Of course, except those who are already dead.

By the way, the Energy Regulatory Commission has finally approved our application for the eight million pesos over-under recoveries. Of all the electric cooperatives in Mindanao, ZANECO is the first to get the nod from the Energy Regulatory Commission and this amount will soon be given back to the member-consumers.

On the technical side, this morning we held ground-breaking ceremony for the installation of a five mva substation in Sindangan. When operational, the Sindangan Substation shall be serving the municipality and its surrounding areas, including Siayan area.

This new substation will absorb the load center, which is Sindangan and Siayan, and will unload our Salug Substation. In effect, it will raise the efficiency of both the Salug and Sindangan substations.

Meanwhile, we also have been assured of enough electricity by 2015 with five megawatts from Therma South Incorporated’s coal plant under construction in Davao area and 25 megawatts from PSAGCor’s coal plant under construction in Kauswagan in Lanao.

We are also expecting that by 2015, the run on the river mini-hydro electric power plant in Bergado, Mutia, will be operational with an output of more or less eight megawatts. We are confident that we will be energy sufficient by that time, and less expensive because coal plants are a lot cheaper than generators using liquid fuel, which we are using as of the moment.

Other accomplishments on the technical side include:

·         the upgrading of Roxas Substation from five mva to 10 mva

·         installation of Automated Meter Reading units, using the Korean made anti-pilferage meters that can be read through a special gadget without necessarily getting near the meters. This system will eradicate human error in meter reading.

·         acquisition of four 30-meter rough terrain cranes

·         installation of Wide Area Network, and

·         renovation of the motorpool, which is now the hub of our area engineering scheme

On the side of institutional services…this is something that we are truly proud of. As we enjoy our Christmas party today, our colleagues – the linemen who volunteered to work in Ormoc – are toiling together with volunteers from other electric cooperatives to restore electric supply in areas under the Leyte Electric Cooperative that were destroyed by Yolanda.

Dili tiaw ang ilang kabutang didto – magtrabaho sila hangtud gabii, silay magluto sa ilang pagkaon, nihit ang tubig, nihit ang mapalit nga pagkaon, walay klaro nga puy-anan ug walay bugnaw nga beer o kaha ice para sa Tanduay.

We should welcome them with pride and gratitude when they come home on the 20th for unselfishly doing a noble work. Because of them, ZANECO earned the admiration not only from the high NEA officials, but most importantly from the grateful people of that place.

Our team in Ormoc also brought a sense of pride among our member-consumers, knowing that we are doing our best to help others. Naa gani usa ka Dipolognon nga miapil sa relief operations sa Ormoc ang nangita gyud asa nagtrabaho ang taga-ZANECO. Sa dihang iya nang nakit-an, malipayon siyang mipasalamat kanila, mikuha ug letrato sa mga linemen duol sa ilang gidala nga crane ug gi-post dayon kini sa Facebook uban sa mga pulong: “Good job ZANECO!”

After all, we are not short of good Samaritans in ZANECO. When a super typhoon hit Surigao, Compostela Valley and others a year ago, we also sent volunteer linemen to help restore electric supply in affected areas.

And in its truest sense, that is the meaning of our theme today: “One heart, one ZANECO, in the spirit of sharing and thanksgiving.”

Our Institutional Services Division is doing its best to extend services to member-consumers, considering that this division is in the forefront of our services and thus has the highest rating level compared to the finance and technical.

Last February 14, our website – – has started to function. It’s main purpose is to inform the member-consumers about the interests, the services, present development and plans of the cooperative.

It is also publishing the unbundled rates for our billing every month. This way, member-consumers can cross-check the bills they receive. In case of complaints, member-consumers can send emails through our website of they can go directly to the office of the Institutional Services Division.

Lastly, may I inform you that next year we will start to collect through our electric bills the Real Property Tax. That would be as soon as we get the approval from ERC. We will start with member-consumers from Dipolog City, which has already collected millions from ZANECO for Real Property Tax. It will also be passed on to other municipalities that will bill ZANECO.

Despite our strenuous pleadings to local government units to forego Real Property Tax because it will be the people who will eventually suffer with increased electric bills, the city government of Dipolog went on demanding that ZANECO pay for it.  We cannot do anything for now, but to pass it on to member-consumers in Dipolog.

Thank you very much, and Merry Christmas to us all.