Consumer group seeks criteria for sale of power assets

A nationwide consumer group is urging government to adopt a set of criteria for electric cooperatives interested in acquiring sub-transmission assets.

The disposal of the sub-transmission assets is part of the privatization program of the National Transmission Co. (Transco). A sub-transmission facility refers to the low-voltage transmission facilities that link the national transmission system and the distribution system of utilities.

Transco president Asisclo T. Gonzaga said government would generate P12 billion for the sale of sub-transmission assets to distribution firms, including electric cooperatives. Under the law, Transco is given two years to complete the transfer of sub-transmission assets.

Gonzaga said that Transco is mandated to provide concessional financing over a period of 20 years for the sale of these assets to electric cooperatives, which want to own the sub-transmission assets in their respective areas.

However, Pete L. Ilagan, president of the National Association of Electricity Consumers for Reforms Inc. (Nasecore) said that Transco must outline strict criteria to ensure the interested parties, particularly electric cooperatives are economically and technically capable.

He suggested that one of the strict requirements is that all cooperative members of a particular cooperative must be made fully aware of the plan of its management to acquire sub-transmission assets. "After all, the members are also the owners of the cooperative and transparency is a standard practice of good governance," he added. – Ted Torres