Power co-ops seeking to defend turf in off-grid market

ELECTRIC COOPERATIVES (ECs) are seeking an audience with the President in the face of moves from the private sector to compete in their franchise areas even without them waiving their right to provide services in the off-grid localities.

Their fear of losing their franchise areas to private businesses came after the Department of Energy (DoE) on March 11 issued a statement that it had committed its full support to President Rodrigo R. Duterte’s call for the removal of “barriers to electrification.”

Presley C. de Jesus, president of the Philippine Rural Electric Cooperatives Association, Inc. (Philreca), said that ECs should not be characterized as ineffective as only 8% of the total 121 ECs are ailing or underperforming.

Mr. De Jesus said it is unfair for private companies to become interested in serving the farflung areas of the country after the electric cooperatives laid the groundwork, and after the former cash-strapped nonprofit organizations invested in their franchise areas.

He said claims that electric cooperatives are inefficient are misplaced considering only a few of their members are facing difficulties, and mostly those serving areas with security issues such as Autonomous Region in Muslim Mindanao (ARMM).

He said most electric cooperatives have through the years gained financial and technical skills to operate like their counterparts in the private sector. —