DOE backs power franchise review, favors solar application

MANILA, Philippines — The Department of Energy (DOE) sees the need to review the franchise of power distributors as part of efforts to speed up the country’s electrification.

Power distributors are granted a franchise to power up their areas and if they are not able to deliver what is required of their franchise, then maybe it should be given to other entities which can  do it, said Energy Secretary Alfonso Cusi.

“We cannot let Filipinos wait forever. There are efficient and inefficient cooperatives. Are we going to allow Filipinos to suffer because of inefficient cooperatives? I don’t think that is right,” he said.

The energy chief said this is not an attack on electric cooperatives  but a reminder to do their job and energize their respective franchise areas.

“I am not against cooperatives.  I am against poor performance, there are good coops, good performers, but for those that are not performing, wake up and do your job because people cannot wait in the dark,” Cusi said.

When asked about the controversial Solar Para Sa Bayan Corp., Cusi called the company a “positive disruptive development.”

Solar Para Sa Bayan has applied for a franchise to more efficiently extend its services to other parts of the Philippines that want alternative choices for electric service with an aim to help DOE achieve its goal of 100 percent electrification and affordable, reliable electricity for all Filipinos by 2022.

However, last week, the House of Representatives shelved plenary action on House Bill 8179 which seeks to grant Solar Para Sa Bayan with a nationwide franchise.

“I want this to make this clear.  The Solar Para sa Bayan [franchise]  is a positive disruptive activity.  But on the legality of the franchise, how they are going to make it legal, I will leave it to the legislative. I will focus on the executive side, and I want all areas to be energized and implemented in accordance to what the law says,” he added.

Meanwhile, Congress should set a baseline on the total electrification of the country as more and more households are added.

Congress has the discretion to review the franchise of ECs but it should determine a baseline to meet the electrification of the whole country, National Electrification Administration (NEA) administrator Edgardo Masongsong said.

This is in reaction to the plan of the Joint Congressional Power Commission (JCPC) to review the franchises of all distribution utilities (DUs), particularly of ailing electric cooperatives (ECs), to determine whether there is need to revamp the existing operators of the franchise areas.