February 7, 2019 | 10:16 pm
THE National
Electrification Administration (NEA) said it supports plans by the Department
of Energy (DoE) to review the performance of electric cooperatives, but added
that the function is currently being performed by NEA.
In a statement on
Thursday, NEA said it supports the decision of the DoE to withdraw its
recommendation to the House of Representatives (HoR) to cancel the franchises
of 17 electric cooperatives (ECs).
“Consistent with its
mandate under Republic Act 10531, the NEA will, moving forward, conduct a
thorough performance review of the ECs involved — a task regularly performed by
the NEA based on set parameters or key performance standards — and submit the
results of the same to the DOE and the HOR for their appreciation and
evaluation,” the NEA said.
NEA issued the
statement after the DoE on Wednesday said that it would conduct the review with
objectivity. The department also said that it would seek to identify the
problems besetting troubled cooperatives.
On Friday, the DoE said
it had ordered the review of electric cooperatives’ financial and technical
performance and warned about franchise cancellations for those that failed to
deliver.
However, its call for
review was followed by a statement from Philippine Rural Electric Cooperatives
Association, Inc. (Philreca) claiming that the DoE had already endorsed the
revocation of 17 franchises in what the group called a “treacherous” act that
disregarded due process.
The DoE later on Friday
said that the “earlier recommendation to Congress has been withdrawn two days
ago.”
Energy Undersecretary
William Felix B. Fuentebella, who acts as the DoE spokesman, said the DoE “sees
the need to further evaluate and assess the present status and performance of
the 17 electric cooperatives.”
On Wednesday, DoE
Secretary Alfonso G. Cusi said there will be due process for all electric
cooperatives.
“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.
But Mr. Cusi said that
for extremely dire cases, the government can no longer ignore the negative
impact on citizens. Other reasonable and legal options, as provided in Republic
Act 10531 or the National Electrification Administration Law, must be
considered.
The DoE enumerated ECs
that have been “chronically failing to provide satisfactory services required
by their electric distribution franchise.”
These include the
cooperatives in Davao del Norte, Albay, Basilan, Camarines Sur III,
Catanduanes, Lanao, Masbate, Occidental Mindoro, Oriental Mindoro, Palawan,
Pampanga III, Sulu, and Zamboanga. — Victor V. Saulon
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