2 electric cooperative associations criticize Leviste’s planned microgrids

By Victor V. Saulon, Sub-editor
TWO of the country’s biggest associations for electric cooperatives have called on the franchise committee of the House of Representatives to think twice before allowing an entity led by Solar Philippines Power Project Holdings, Inc. to build minigrids in popular tourist destinations.
In a statement, National Association of General Managers of Electric Cooperatives (Nagmec) and Philippine Rural Electric Cooperatives Association (Philreca) expressed “grave concern” over Solar Philippines’ plan, calling it underhanded and a death sentence to their members.
The associations, through their heads, were reacting to a statement from Solar Philippines President Leandro L. Leviste on his plan to build minigrids in 12 remote towns in the Philippines.
Nagmec and Philreca claimed that Solar Philippines was applying for a national franchise through its minigrid project. They also said the House Committee on Franchises “reportedly scheduled to pass” the franchise for plenary deliberations on Monday (Sept. 3).
Nagmec President Sergio C. Dagooc said Solar Philippines “slyly and wisely chooses these locations in tourism-promoted locales because establishing a power distribution footprint there is always good for public and press relations.”
He said the company’s “underhanded efforts are beginning to bear fruit with the reported impending passage” of the national franchise in the House.
Sought for comment, Mr. Leviste said the microgrids are under a new company he formed called Solar Para sa Bayan, not Solar Philippines.
“Our first operations include towns such as Paluan, Occidental Mindoro; Dumaran, Palawan; Claveria, Masbate; and Calayan, Cagayan; which have been considered so commercially unviable they have not even been served by electric utilities and their requests for service ignored for decades,” he said via e-mail.
Mr. Leviste, whose mother is Senator Loren B. Legarda, said the company is complying with all legal requirements.
“Lastly, it is worth emphasizing that under the Constitution, no franchise shall be exclusive, and the franchises of electric utilities all explicitly state they are non-exclusive. We therefore hope that both private companies and electric cooperatives will join in the common mission of bringing reliable and affordable electricity to the Filipino people who have so long aspired for better service,” Mr. Leviste said.
However, Mr. Dagooc said “any effort on electrification done without government subsidy is not sustainable because the consumers stand to pay the very expensive true cost of electrification.”
He said only the electric cooperatives sustained rural electrification for close to five decades now “because the government subsidized the cost.”
He challenged Solar Philippines and other private entities to prioritize remote, underserved locations first if they were sincere about supplying power to the countryside.
Meanwhile, Philreca President Presley C. De Jesus asked whether the government was being selective and prone to unduly favoring for profit groups in their push to enter the power sector.
“There are existing rules and issuances on electrification that electric coops follow,” Mr. De Jesus said. “Are its rates approved by the Energy Regulatory Commission (ERC)?”