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'Cleansing' and review of electric coops categorization pushed

Published Feb 13, 2024 07:37 am

At A Glance

  • Across government administrations, several ECs have been the subject of relentless complaints as the 'weak link' when it comes to servicing consumers – and the wider impact of that had been sluggish growth of economic activities also in their respective service areas.

Cleansing from misdeeds as well as review of categorization of the country’s more than 120 electric cooperatives (ECs) are being pushed following reports of less-than-desired operational outcomes of these power utilities.

The call was put forward by Senate Committee on Energy Vice Chairman Sherwin T. Gatchalian; and he primarily called on the National Electrification Administration (NEA) to institutionalize a new system for the categorization of the ECs.

In the proposed revision of the categorization of the ECs, the lawmaker emphasized that the main aim is to “help ensure that these power institutions are being managed well financially and operationally.”

He has not given details how the categorization shall be changed or fortified, but he is expecting NEA to take the lead in aiding the ECs improve their overall performance – not just in servicing the needs of their customers, but also in revving up their top and bottom lines.

At current state, the solon noted that the performance of many ECs had been very shoddy - given reports that some of them are hounded by issues of corruption as well as mismanagement – and these in turn, have been giving these power utilities a bad rap.

“Issues of corruption hounding certain ECs cause consumers to lose their confidence in the ECs concerned,” the lawmaker stressed, adding that “such situation negatively impacts operations to the detriment of consumer welfare.”

Gatchalian narrated that he received “recurring complaints that certain EC executives are allegedly enriching themselves at the expense of their respective EC’s financial and operational viability which results in poor services.”

Across government administrations, several ECs have been the subject of relentless complaints as the ‘weak link’ when it comes to servicing consumers – and the wider impact of that had been sluggish growth of economic activities also in their respective service areas.

There were also previous reports that the management of some of these power utilities are intrinsically linked to political leaders in their cities, municipalities or provinces, hence, allegations of corruption and incompetent leadership at the ECs have been stifling both their operational and financial viabilities.

The country’s electric cooperatives have been servicing roughly 15 million customers nationwide – and it is also their quality of service that is being depended upon so the domains beyond urban centers could also advance economically.

Related Tags

National Electrification Administration Senator Sherwin T. Gatchalian Electric cooperatives consumers power service interruption
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