DOE sets performance review of all electric cooperatives

The Department of Energy (DOE) will conduct an objective review of the performance of electric cooperatives (ECs) as it warned non-performing power cooperatives of dire consequences if found to be inefficient.

DOE Secretary Alfonso Cusi assured the objectivity of the EC performance review, which seeks to identify the problems besetting troubled cooperatives.

“There will be due process for all ECs. Our priority is to address the root causes of their problems and help in their rehabilitation so they may provide the quality of services consumers in their franchise areas truly deserve,” he said.

He warned, however, that the government could no longer ignore the negative impact on citizens.

Cusi said other reasonable and legal options, as provided in Republic Act 10531 or the National Electrification Administration Law, must be considered.

According to the DOE, there are 17 ECs that have been chronically failing to provide satisfactory services required by their electric distribution franchise. These include DANECO (Davao del Norte), ALECO (Albay), BASELCO (Basilan), CASURECO III (Camarines Sur), FICELCO (Catanduanes), LASURECO (Lanao), MASELCO (Masbate), OMECO (Occidental Mindoro), ORMECO (Oriental Mindoro), PALECO (Palawan), PELCO (Pampanga), SULECO (Sulu), and ZAMCELCO (Zamboanga).

Residents of these areas have been complaining about persistent and unresolved brownouts caused by some ECs’ heavy debts and failure to pay for their power supply.

It may be recalled that even President Duterte himself publicly expressed his dissatisfaction over the poor electric services in Palawan and Masbate.

“We trust that ECs in these problem areas will cooperate with the DOE’s constructive efforts to get to the heart of their long-running problems. We will work with the ECs in creating and implementing viable solutions for the benefit of their consumers,” Cusi said.

The DOE earlier recommended to the House of Representatives through Speaker Gloria MacapagalArroyo the revocation of franchise of 17 ECs which were “underperforming and financially and technically distressed.”

The recommendation has been withdrawn to further evaluate and assess the present status and performance of those ECs.

The Philippine Rural Electric Cooperatives Association Inc. (Philreca), the country’s umbrella group for electric cooperatives (ECs), has slammed the Energy secretary for his recommendation and for withdrawing it abruptly.

“While we believe that recalling and revoking the original endorsement is the right thing to do, we cannot help but express our sentiments because his actions have already caused significant damage and irreparable negative impression to the ECs,” Philreca said.