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An energy consumer advocacy group is urging regulators and stakeholders to prioritize accountability and reform within electric cooperatives (ECs) rather than immediately resorting to privatization, as a distribution dispute continues to unfold in Samal Island.
Partners for Affordable and Reliable Energy (PARE) said in a statement that structural issues in some ECs should not automatically justify corporate takeovers. “Privatization should be a last resort when all efforts, assistance, and reforms have been exhausted,” said Nic Satur Jr., PARE chief advocate officer.
The group stressed that existing laws already empower the National Electrification Administration (NEA) to intervene in underperforming cooperatives, arguing that the cooperative model remains viable if properly regulated and held accountable.
PARE acknowledged that some ECs suffer from operational inefficiencies, including high system losses, costly power supply agreements, governance gaps, and corruption allegations. These issues, it said, ultimately burden consumers who consistently pay their electricity bills.
Balanced Oversight
Rather than dismantling the cooperative framework, PARE called for stricter oversight of both ECs and regulators. “What we need is real accountability from both problematic ECs and regulators,” Satur said, adding that the group continues to monitor sector developments and remind institutions of their mandates.
The advocacy group clarified that it does not defend poorly performing cooperatives but supports those that deliver reliable service while protecting consumer welfare.
This position was echoed in a related social media comment from PARE, which noted that while private utilities may bring improvements, results are not guaranteed. The group pointed to the need for Davao Light and Power Company (DLPC) to demonstrate its capability to deliver reliable and affordable electricity following its entry into areas previously served by Northern Davao Electric Cooperative (Nordeco).
The comment also stressed that Nordeco retains an opportunity to prove its effectiveness in areas still under its franchise, suggesting that future decisions should be based on performance outcomes.
Samal Power Transition Dispute
The debate comes amid a continuing legal and operational conflict between Nordeco and DLPC over power distribution rights in the Island Garden City of Samal (Igacos).
Nordeco recently called on DLPC to adhere strictly to a court-issued Writ of Possession, asserting that it only covers 26 specific distribution assets across 26 barangays, and not the entire island. The cooperative warned against any expansion beyond the writ’s legal scope, citing concerns over potential misinterpretation.
The dispute stems from Republic Act No. 12144, which expanded DLPC’s franchise to include parts of Davao del Norte and Davao de Oro, including Samal. A Regional Trial Court subsequently allowed DLPC to take control of certain assets as part of expropriation proceedings tied to the transition.
However, both parties differ in their interpretation of the writ’s coverage. While DLPC maintains that its actions are supported by its expanded franchise and regulatory approvals, Nordeco argues that legal challenges remain unresolved and that the transition is not yet final.
Supply Reliability
Despite the dispute, both utilities have pledged to maintain a stable electricity supply. Still, overlapping claims and legal uncertainty continue to affect consumers and businesses in the area.
PARE stressed that regardless of ownership or structure, the primary benchmark should remain service reliability and affordability, reinforcing its position that reforms, not outright privatization, should drive sector improvements.
Source:
https://www.facebook.com/share/p/1K6kTeFbpB
https://www.sunstar.com.ph/davao/supreme-court-upholds-davao-light-expansion
