Probe of power co-ops sought over party-list funds

MANILA, Philippines — A consumer group is calling on the Energy Regulatory Commission (ERC) to investigate power cooperative funds being used in party-list campaigns.

In a letter to the ERC, National Association of Electricity Consumers for Reforms Inc. (NASECORE) said some electric cooperatives (ECs) made financial and other contributions to party-list groups vying for seats in the forthcoming May 13 elections. 

NASECORE slammed the ECs for using consumer payments for campaign purposes.

Those contributions could have been used at the very least to improve the efficiency and quality of the ECs’ services or lower electricity rates, NASECORE executive director Antonio Acebedo said.

As EC consumer funds are meant to be used exclusively for distribution and other related electric services, Acebedo called on the ERC to immediately undertake the necessary steps to protect the interest of the consumers and impose the appropriate penalties as the law demands.  

The group cited the P3-million allocation by Davao del Sur Electric Cooperative as “financial contribution” to party-list group Philippine Rural Electric Cooperatives Association Inc. (PHILRECA). 

Acebedo said those contributions are most likely being used for campaign purposes.

“(It) is in clear violation not only of election laws but, even worse, also of the Energy Regulatory Commission-approved EC Annual Revenue Requirement,” Acebedo said. 

Under the law, a distribution utility like an EC is a public utility because it provides a public service in lieu of the state.

“What is worse, the recipients of the EC contributions are party-list groups purporting to represent consumer interests,” said former energy undersecretary Pete Ilagan, one of the NASECORE founders.

Two of these party-lists have had seats in Congress for years but have yet to present concrete achievements in terms of lowering electricity rates or improving systems and structures for efficient, reliable and quality service, Ilagan said.