Published
By Myrna M. Velasco
The Joint Congressional
Power Commission (JCPC) is inclined to initiate a review on the performance of
the electric cooperatives (ECs) – since the oversight power of the body is seen
fast-tracking requisite recommendation on the revocation of franchises of
ailing power utilities.
Senate Committee on
Energy Chairman Sherwin T. Gatchalian said his proposal “is for JCPC to do the
review – so Congress and Senate will already be represented all at one time.”
Then from the outcome
of the scrutiny of the power utilities’ performance and manner of service
deliveries, the JCPC can already readily recommend the cancellation of their
respective legislated franchises.
“We can initiate the review of the electric cooperatives’ performance and
adherence to their franchise mandates because we have to strengthen accountability
and we cannot just make do with business-as-usual mode of service delivery,”
the lawmaker said.
And once specified ECs
are already out of their service domains, Gatchalian noted the government can
exercise several options on how to take over and/or inject capital into these
weak-performing utilities. His proposal is to pursue the review process in
coordination with the Department of Energy.
One mode, he said,
could be preliminary government takeover of the EC through the National
Electrification Administration (NEA) then offer it eventually to a private
investor; option two is to dangle it directly to a willing private investor
through expropriation proceedings; and three, a third party investor will come
in to secure a new franchise then it will just pay the EC or distribution
utility with the corresponding wheeling charges on the use of its power lines
and load networks.
“We already know that there are coops with very inefficient service, or they
are financially bankrupt; or have not been performing according to the mandate
of their franchise – so let’s call a spade a spade,” Gatchalian stressed.
He added “let’s review
them (ECs). If we need to revoke their franchises, then we shall do it, so the
people will not be left at the raw end of the deal.”
Gatchalian qualified
that he is firmly supporting the call of Energy Secretary Alfonso G. Cusi on
the review of the ECs’ performance – chiefly the 17 electric cooperatives that
the DOE had earlier recommended to have their franchises abrogated.
“Their franchises can
be revoked and let another party be issued a new franchise – either through
another EC or any other cooperative style – but for me, I’m open to private
sector participation,” he said.
Gatchalian further indicated “the other option is for government to temporarily
takeover. The government can take initial control of the EC, and then just
offer it eventually to a private sector taker.”
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