Zarate warns EO 156 may be used to take over electric cooperatives

Bayan Muna party-list Representative Carlos Isagani Zarate on Monday warned against an executive order mandating the Department of Energy (DOE) to identify unviable and poorly-served areas within the franchise areas of distribution utilities.

Executive Order No. 156 was signed by President Rodrigo Duterte to “institute measures to ensure consistent and reliable electricity service in inadequately served areas, improve performance of ineffective distribution utilities, and achieve total electrification of the country."

According to Zarate, this EO could be a "guise to take over electric cooperatives."

"EO 156 may seem innocuous and even supposedly beneficial to far-flung areas still in need of electricity but it may just be a disguised scheme to take over and then sell to private power players the electric cooperatives especially with the devastation caused by Odette," Zarate said.

The said order mandates the DOE to direct all distribution utilities to submit a Comprehensive Electrification Master Plan for the total electrification of their respective franchise areas.

On the other hand, the Energy Regulatory Commission (ERC) is tasked to "promulgate rules in computing rates that allow full cost recovery for the facilities built by microgrids, [distributed energy resources], and other alternative electric service providers.”

The National Electrification Administration, for its part, is mandated to “coordinate with the DOE and extend the necessary assistance to enhance distribution development.”

Zarate said the timing of EO 156 is quite suspicious considering that the national and local elections are approaching.

He claimed that a change in the management of electric cooperatives may affect the delivery of electricity during elections especially if they are controlled by allies and appointees of the administration.

GMA News Online has sought comment from the DOE on the lawmaker's remarks but the department has yet to reply as of posting time. — DVM, GMA News