Group nixes House bid to privatize power coops

MANILA, Philippines — A consumer group is opposing moves in the House of Representatives to privatize electric cooperatives (ECs), particularly in Negros Island.

 The Power for People (P4P) Coalition cited Negros Electric Cooperatives Association (NECA) president Dan Pondevilla, who called on electric coops in Negros to unite against the proposal.

There are three power coops in Negros Island, namely Northern Negros Electric Cooperative Inc., Central Negros Electric Cooperative and Negros Occidental Electric Cooperative.

“Privatization of electric cooperatives for Negros will only worsen the problem of dirty and costly energy,” P4P convenor Gerry Arances said.

 “Privatization of most of the energy and power industry has given way to big corporations calling the shots in the country’s energy policy at the expense of power consumers,” he said.

 The proposal for privatization should pose as a challenge for ECs to continue improving their distribution service to consumers, the consumer group said.

“While we must remain vigilant against this proposal, it also should serve as a challenge to electric coops across the country to get their act together in delivering clean, affordable, and reliable electricity in the island,” Arances said.

Contrary to popular conjectures, National Electrification Administration (NEA) chief Edgardo Masongsong said he believes subjecting financially distressed ECs to outright privatization is not the only way to turn things around for struggling co-ops and further broach the idea that an EC-to-EC takeover might be a better option.

NEA has been pushing for an “EC-to-EC” rehabilitation plan for financially distressed power utilities in line with the government’s plan to speed up electrification in the country.

Masongsong encouraged all community-owned power distribution utilities to work together and pool their resources in aid of struggling co-ops.

This as he stressed the continuing challenges facing the rural electrification sector, including the need to address persistent complaints of inefficiency among underperforming ECs.

Masongsong also advocates for well-off cooperatives to help the government find more creative solutions to the lingering problems besetting the industry, including the constant threat of a private company taking over the franchise of an ailing EC.