Electric coops worried over entry of private firms in rural areas

More than 100 electric cooperatives (ECs) which are non-stock and non-profit organizations have expressed apprehensions over the government’s plan to allow private corporations to enter the rural electrification business in the country.

In a statement, the National Association of General Managers of Electric Cooperatives (NAGMEC) said the entry of private corporate businesses would dilute the role of people’s organizations which enjoy protection under the law.

Led by its president Sergio Dagooc, NAGMEC said the government’s plan to allow private business to participate in rural electrification should be thoroughly re-evaluated.

Dagooc said electric cooperatives enjoy special protection under the Constitution as grassroots people’s organizations and “they may be pushed aside if pure corporate interests are allowed to dictate electrification programs in unserved and underserved areas in the country.”

“Cooperatives such as electric coops are mutual help organizations that uplift the lives of Filipinos who would otherwise have no access to capital and investment opportunities,” Dagooc said.

“Electric coops in particular perform a public service because they provide the electrification ecosystem in rural areas. So we’re hitting two birds with one stone here – we encourage people’s participation in countryside development and we provide electricity at the same time. With the planned entry of corporate entities, these will both be jeopardized,” he added.

He pointed out that ECs in the country enjoy exclusive electricity franchise privileges, allowing them to service rural areas.

“If the plan to allow the private sector to engage in rural electrification pushes through, it should be under a set-up where all parties, including end-users, shall benefit.”

"If there is no chance that our policy makers would reconsider, and the plan cannot be avoided anymore, we call for protection from over-reach and franchise area encroachment,” he also said.

“Let private interests serve the underserved and unserved areas in our franchise but let it be done under a partnership with us, and not without us," he stressed.