Consumer group Laban Konsyumer Inc. (LKI) has asked the National Electrification Administration to conduct a comprehensive analysis, including service records, of the country’s electric cooperatives.
In a statement released Wednesday, LKI said this analysis would determine whether the electric cooperatives with lower rates than Manila Electric Co. (Meralco) are providing quality service and a consistent 24/7 power supply with minimal interruptions.
The group acknowledged that some cooperatives offer lower electricity costs, but it said the service they provide should be comparable to Meralco and other privately owned utilities in major metropolitan areas in the Visayas and Mindanao.
LKI said while consumers prefer cheaper electricity, the service must also be “substantial, adequate and sustainable.”
“That is why the functions of the Department of Energy and the Energy Regulatory Commission are vital to the consumers,” LKI said. “They should be balancing the cost and services these distribution facilities are providing.”
LKI cited a September 2019 report by Shinichi Taniguchi for the Asian Development Bank Working Paper Series, which stated that the Philippines continues to face major energy challenges.
The report noted a discrepancy in electrification rates between cities and rural areas and frequent power shortages.
It added that electricity access in the capital region, which Meralco services, is as high as 98 percent, while remote regions are still “lagging.” In Mindanao, for example, the access rate is only 40.9 percent.
“It must be unfair for the other distribution facilities to be compared with electric cooperatives that offer mediocre service,” LKI said.
LKI noted that some distribution utilities invest heavily in upgrading their facilities by securing more reserve power and building resilient, disaster-proof power lines.
“These are not cheap but will definitely bring stability in consumer electricity especially during calamities,” LKI said.
The group also urged NEA to release an update on the rural electrification program, and called for a full comparative analysis that includes not only electricity rates but also key service reliability indicators, system losses and financial performance of the ECs.
LKI reiterated its call for transparency and accountability in the electrification sector and urged the NEA to refocus on its core mandate of “ensuring reliable, affordable, and efficient service to all Filipino consumers.”
