Thursday, February 7, 2019

Electric co-ops chide DOE for ‘baseless’ accusations



By Lenie Lectura -

A recommendation by the Department of Energy (DOE) to revoke—but later on recalled—the franchise of 17 electric cooperatives has caused significant damage and irreparable negative impression to electric cooperatives, a group representing them said.
“As it turned out, this endorsement was done in haste and in the absence of due diligence on the part of the [DOE], because just recently, the same endorsement was recalled  and revoked by Secretary Alfonso G. Cusi himself,” a statement by the Philippine Rural Electric Cooperatives Association Inc. (Philreca) said over the weekend.
As confirmed by Undersecretary Felix William B. Fuentebella last week, the DOE recommended to the House of Representatives through Speaker Gloria Macapagal-Arroyo the revocation of the franchise of the 17 electric cooperatives. The DOE said these organizations had been underperforming, are in financial dire straits and technically distressed.
Later on, Fuentebella said the “earlier recommendation to Congress has been withdrawn two days ago,” citing the “need to further evaluate and assess the present status and performance of the 17 electric cooperatives.”
Philreca said the DOE should have conducted an evaluation and assessment on the status and performance of these cooperatives in the first place.
“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” electric cooperatives.
On the same day the recall was announced, the DOE said it will review the cooperatives’ “compliance to the service requirements of their respective areas,” as part of the agency’s initiatives to improve power services in the provinces by enhancing the performance of these cooperatives. 
The DOE noted many electric cooperatives failed to carry out their mandate for various reasons. These include inefficient management, corruption, unnecessary political interference, as well as institutional conflicts.
Philreca noted that the statement of the DOE and the endorsement letter to the House of Representatives are meant “to manipulate the mindset of the public for them to think that the electric cooperatives are not performing well.”
“And with this comes the justification on the entry of private, for-profit and zero-experience corporations,” the organization said.
Philreca is hoping that Cusi would be just and fair in assessing the accomplishments and challenges of electric cooperatives.
“We hope that the DOE would see how the electric cooperatives have been operating in areas no private distribution utility has dared to enter before.”
The DOE said it will request the National Electrification Administration to submit the technical and financial performance reports of electric cooperatives for the last five years.
In addition, the DOE said it will ask these cooperatives to submit their road maps and strategies for improving their services, operations and economic viability in the next three years. 
“The review will be an inclusive process,” Cusi said. “We will ask the electric cooperatives to identify their main challenges and work with them in determining long-term and sustainable solutions.”
He added that the results of the review will be made available to the public “for transparency purposes.”
Depending on the review’s findings, task forces may be created to assist underperforming electric cooperatives, according to Cusi.
For nonperforming electric cooperatives, on the other hand, the DOE may recommend the cancellation of their franchises.
“Cusi claims that the review will be inclusive; that the electric cooperatives will be asked about their challenges; and that he will help us determine sustainable solutions,” Philreca retorted. “All these claims fall short of what the secretary has been doing for the past months.”
The group also accused the DOE chief as having “consistently declined restoring the budget cuts to the government’s Sitio Electrification Program.” Philreca also said Cusi “has favored the entry of for-profit corporations in the electrification sector versus supporting electric cooperatives who are experiencing different kind of challenges.” The group added that Cusi “has never engaged electric cooperatives on any dialogue or meeting with an open mind so as to come up with solutions.”

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