100% found this document useful (1 vote)
129 views3 pages

Electric Cooperatives Briefer

This document discusses the performance and classification of electric cooperatives (ECs) in the Philippines. It notes that as of early 2018, 64 ECs were classified as "Green" meaning they met performance standards, 42 were "Yellow 1" meaning they failed some standards, and 9 were "Red" or "Ailing" meaning they failed to meet franchise obligations. The 9 ailing ECs as of 2018 included Albay Electric Cooperative, Camarines Sur III Electric Cooperative, and Masbate Electric Cooperative among others. The document also outlines the legal framework and responsibilities for ECs according to the National Electrification Administration.

Uploaded by

Jana Pinca
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
100% found this document useful (1 vote)
129 views3 pages

Electric Cooperatives Briefer

This document discusses the performance and classification of electric cooperatives (ECs) in the Philippines. It notes that as of early 2018, 64 ECs were classified as "Green" meaning they met performance standards, 42 were "Yellow 1" meaning they failed some standards, and 9 were "Red" or "Ailing" meaning they failed to meet franchise obligations. The 9 ailing ECs as of 2018 included Albay Electric Cooperative, Camarines Sur III Electric Cooperative, and Masbate Electric Cooperative among others. The document also outlines the legal framework and responsibilities for ECs according to the National Electrification Administration.

Uploaded by

Jana Pinca
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

ELECTRIC COOPERATIVES IN BANKRUPTCY

Briefer

RA 10531 or the National Electrification Decree


 Section 2: to promote the sustainable development in the rural areas
through rural electrification, empower and strengthen the National
Electrification Administration (NEA) to pursue the electrification
program and bring electricity, through the electric cooperatives as
its implementing arm, to the countryside even in missionary or
economically unviable areas, and empower and enable electric
cooperatives to cope with the changes brought about by the restructuring
of the electric power industry.

 Section 5: to strengthen the electric cooperatives, help them become


economically viable and prepare them for the implementation of retail
competition and open access pursuant to Section 31 of the EPIRA, the
NEA is authorized and empowered to… supervise the management and
operations of all electric cooperative and provide institutional,
financial and technical assistance to electric cooperatives upon
request of the electric cooperatives.

The Status Quo


 There are 121 ECs in the country.
 February 2019: Department of Energy Secretary Alfonso Cusi has called
a review of the performance of 17 electric cooperatives and their
compliance to the service requirements of their respective franchises
after withdrawing its recommendation to revoke their franchise in the
House of Representatives1.
 The order was made after the Philippine Rural Electric Cooperatives
Association, Inc. (PHILRECA) criticized the recommendation for being
done without due process.
o The 17 ECs are Abra (Abreco), Pampanga 3 (Pelco III), Occidental
Mindoro (Omeco), Oriental Mindoro (Ormeco), Palawan (Paleco),

1
https://www.philstar.com/business/2019/02/02/1890043/doe-orders-review-franchise-compliance-electric-
cooperatives
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).2
 Energy Secretary Cusi said that some ECs have failed to fulfill their
franchise obligations due to inefficient management, corruption,
unnecessary political interference, and institutional conflicts.3
 “PHILRECA said that in the last four to five decades, ECs and NEA have
successfully energized:
o 78 provinces (100 percent)
o 1,475 cities and municipalities (100 percent)
o 36,057 barangays (99 percent)
o 123,198 sitios (83 percent)
o 12,713 million household connections (85 percent).”4

CLASSIFICATION OF ECs5
To measure the financial and operating performance of the ECs
GREEN ECs which meet all parameters and standards and thus
needing less NEA intervention
YELLOW (b-1) - ECs, which failed to comply with not more than (3) of
the parameters and standards and shall fall under the watch
list group

(b-2)- ECs which failed to comply with four (4) or more


parameters and standards and ECs which fall under any of
the circumstances mentioned in Section 20 of the IRR but
have not been declared as “Ailing ECs;”
RED ECs, which have been declared and classified by the NEA as
Ailing ECs after the observance of due process

2
https://newsinfo.inquirer.net/1081060/power-co-op-group-hits-flip-flop-on-franchises
3
https://www.bworldonline.com/doe-orders-review-of-performance-of-electric-cooperatives/
4
https://www.philstar.com/business/2019/02/02/1890043/doe-orders-review-franchise-compliance-electric-
cooperatives
5 Department of Energy. National Electrification Administration. Compliance Report on Performance of Electric

Cooperatives for the First Quarter of 2014


PERFORMANCE OF ECs
Classification 1st Qtr of 4th Qtr of 4th Qtr of 4TH Qtr of 4th Qtr
20186 20177 20168 20159 of
201410
Green 64 87 85 72 57
Yellow 1 42 21 22 33 43
Yellow 2 6 3 4 5 10
Red 9 10 10 11 11
TOTAL 121 121 121 121 121

 According to the compliance report by NEA, as of the first quarter of


2018, there are 64 ECs classified as Green, 42 under Yellow1 and 6 were
evaluated as Yellow-2. There are remaining nine (9) ECs classified as Red
or Ailing11.

RED/AILING ELECTRIC COOPERATIVES12


*As of March 31, 2018
1. ALECO
2. CASURECO III
3. MASELCO
4. TISELCO
5. TAWELCO
6. BASELCO
7. SULECO
8. LASURECO
9. ABRECO

6 Department of Energy. National Electrification Administration. 1st Quarter Compliance Report of 2018
7 Department of Energy. National Electrification Administration. 2nd Semestral Report of 2017
8 Department of Energy. National Electrification Administration. 2nd Semestral Report of 2016
9 Department of Energy. National Electrification Administration. 2nd Semestral Report of 2015
10
Id.
11 Department of Energy. National Electrification Administration. 1st Quarter Compliance Report of 2018
12
Id.

You might also like