Philippine electric co-ops face scrutiny over solar home systems resistance
Lawmakers are pressing for clarity on whether electric cooperatives are blocking household solar installations in urban areas in the Philippines. The issue emerges in a committee hearing where concerns center on possible income losses for co-ops and the absence of penalties for resistance.
Highlights
- Senator Francis G. Escudero highlights that electric cooperatives hinder solar home system installation in urban areas to protect revenue from high-collection markets.
- Escudero argues solar home systems are especially cost-effective in remote areas, eliminating the need for costly poles and power lines along missionary routes.
- NEA Deputy Administrator Rosero-Lee states the agency currently imposes no sanctions for co-op resistance but is considering advisories and penalties following the Senate hearing.
Senate hearing examines solar access concerns
As reported by BusinessWorld Online, Senator Francis G. Escudero questions officials of a government-owned energy corporation over reports that electric cooperatives are resisting the implementation of solar home systems in town and city centers.Escudero says co-ops make it difficult for households to install solar systems in urban areas because wider adoption could reduce income from homes and businesses in locations where collections are easier. He adds that many Filipinos in city centers can afford home electric systems, where collection rates and operating efficiency are also higher.
The senator also says remote areas give cooperatives more reason to support solar home systems because these do not require poles and power lines along missionary routes. His remarks frame the issue as both a revenue concern in urban markets and a cost-saving option in harder-to-serve areas.
NEA denies awareness, weighs penalties
National Electrification Administration Deputy Administrator Rossan SJ. Rosero-Lee tells the senator she is unaware of any electric cooperatives resisting the push for solar home systems. She says the agency is encouraging renewable energy sources, including solar home systems, in both rural and urban areas.Rosero-Lee says there are currently no sanctions for cooperatives that resist the policy push, but adds that the NEA is open to imposing such measures. She says the agency can formulate a memo or issue an advisory to electric cooperatives and include a penal clause, and adds that Escudero's concerns will be relayed to the NEA administrator.
In earlier coverage, we examined Philippine bond reforms aimed at improving liquidity and supporting broader investment conditions.