By:
Ronnel W. Domingo / 05:17 AM February 04, 2019
An umbrella group of
121 electric cooperatives across the country expressed frustration over the
Department of Energy’s (DOE) flip-flop over a recommendation to revoke the
franchises of 17 of the group’s members, saying this showed the haste and
unjustness of DOE actions.
In a memorandum dated
Jan. 11 and addressed to Speaker Gloria Macapagal-Arroyo, Energy Secretary
Alfonso Cusi recommended the cancellation of franchises of 17 utilities as
these were found to be “underperforming, financially and technically
distressed.”
Withdrawn
Cusi said aside from
recommending that the cooperatives’ franchises be revoked, the DOE was also
drafting policy to adopt a process of competitive selection for the grant of
franchises to replace the existing utilities.
But on Friday, when
Philippine Rural Electric Cooperatives Association Inc. (Philreca) raised a
howl of protest over the memo, Energy Undersecretary Felix William Fuentebella
said Cusi had already withdrawn his recommendation on Jan. 29.
“The DOE sees the need
to further evaluate and assess the present status and performance of the 17
electric cooperatives,” Fuentebella said.
Targets
Philreca said in a
statement that such flip-flopping meant that the recommendation was done in
haste and in the absence of due diligence on the part of the DOE.
The 17 utilities
included the cooperatives of Abra (Abreco), Pampanga 3 (Pelco III), Occidental
Mindoro (Omeco), Oriental Mindoro (Ormeco), Palawan (Paleco), Camarines Sur 3
(Casureco III), Albay (Aleco), Masbate (Maselco), First Catanduanes (Ficelco),
Ticao Island (Tiselco), Zamboanga City (Zamcelco), Davao del Norte (Daneco),
Basilan (Baselco), Sulu (Suleco), Tawi-Tawi (Tawelco), Maguindanao (Magelco)
and Lanao del Sur (Lasureco).
“While we believe that
recalling and revoking the original endorsement is the right thing to do, his
(Cusi’s) actions have already caused significant damage and irreparable
negative impression on the electric cooperatives,” Philreca said.
Review
On Friday, Cusi, in a
statement, announced that the DOE would review all electric cooperatives’
compliance with service requirements of their franchises.
The energy chief said
many cooperatives had failed to carry out their mandate for various reasons.
The controversial memo
came in the wake of another controversy over the takeover bid targeting Iloilo
City’s Panay Electric Co. (Peco), which had applied for renewal of franchise
following endorsement by the DOE.
Peco’s franchise,
however, lingered without action at the House of Representatives which instead
approved the application for franchise of a new power industry player, More
Electric and Power Corp.
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