DOE to Review Franchise Compliance of ECs

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Department of Energy (DOE) Secretary Alfonso G. Cusi announced the review of all electric cooperatives' (ECs) compliance to the service requirements of their respective franchises, as part of the agency's initiatives to improve power services in the provinces by enhancing EC performance.

While ECs have been the government's long term partners in providing electricity in far-flung areas of the country, many ECs have failed to carry out their mandate for various reasons. These include inefficient management, corruption, unnecessary political interference, as well as institutional conflicts as is the case with DANECO.

The DOE will also look into the rise in missionary subsidies in areas which include, among others, Occidental Mindoro, Catanduanes, Marinduque, and Tablas.

The Energy Secretary will request the National Electrification Administration to submit the technical and financial performance reports of ECs for the last five years.

In addition, ECs will also be asked to submit their road maps and strategies for improving their services, operations and economic viability in the next three years.

"The review will be an inclusive process. We will ask the ECs to identify their main challenges and work with them in determining long-term and sustainable solutions. For transparency purposes, the results of the review will be made available to the public," Sec. Cusi said.

Depending on the review's findings, task forces may be created to assist underperforming ECs.

For non-performing ECs, on the other hand, the DOE may recommend the cancellation of their franchises.

"As we seek to attain total electrification of the country by 2020, we will ensure that all operating ECs are providing the best services to their consumers. Our fellow countrymen deserves nothing less," the Energy Chief concluded.

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