Power coops ordered to spare lifeline users from disconnection

MANILA, Philippines — State-run National Electrification Administration (NEA) has enjoined all electric cooperatives (ECs) to implement the no disconnection policy for lifeline or low income consumers.

NEA administrator Edgardo Masongsong advised the 121 ECs to fully observe the directives issued by the Department of Energy (DOE) regarding the extension of no disconnection policy for lifeline consumers.

Earlier this month, the DOE issued an advisory directing all distribution utilities (DUs), including ECs, to “implement a no disconnection policy due to non-payment of bills falling due by March 2021 for all electricity consumers whose consumption level are within the lifeline rate set by the Energy Regulatory Commission (ERC) for the DU’s franchise area.”

This will apply to all unpaid regular bills and installment payments relative to various advisories of the DOE and the ERC.

In addition, all power consumers who are still unable to pay their bills may coordinate with their DUs to enter into socially equitable and manageable payment terms to prevent eventual disconnection of electricity services.

“In this regard, all ECs are advised to fully observe the implementation of the (DOE) directives,” Masongsong said.

The NEA chief also directed the ECs to post the DOE advisory on their respective websites and consumer welfare help desks for the information of their member-consumer-owners.

The DOE advisory came following President Duterte’s approval of the agency’s recommendation to extend the “no disconnection policy” to assist the marginalized electricity consumers.

The NEA directive comes after some ECs said the no disconnection policy could affect their operations and services.

The Philippine Rural Electric Cooperatives Association Inc. (PHILRECA) earlier said it was not against any extension of no disconnection policy and that it would categorize the consumers who can avail of such a policy.

PHILRECA president Party-List Rep. Presley de Jesus said any prolonged extension of this policy will disrupt cash flow in power supply chain.

This is because DUs are mere collection agents of generation companies and even by the government in terms of taxes.

De Jesus said “power suppliers also have their own obligations and payments due to banks and other financial institutions. So, DUs possible default or non-payment will eventually affect power suppliers’ obligations to banks and financial institutions as well.”

In the case of ECs who are non-profit electric distribution utilities by nature, PHILRECA claimed that they are not like the other utilities which have huge financial capital to support their operations in circumstances like this pandemic.

PHILRECA executive director and general manager Janeene Depay-Colingan said all ECs have actually been trying to extend all help and assistance to their customers.