I am most likely totally wrong on my final conclusion here. But nevertheless here’s what I see is happening now in the EC sector.
Many of the electric cooperatives (ECs) clearly get the following:
ECs are in the wires business!
This is fundamental to what they do. They see that this is what they are best at – delivering electricity from a supply point to end users under challenging conditions. They realize that they have to get the pricing right, and acquire the business planning techniques and tools, and get the cost controls in place on that particular line of business to survive. And most clearly see this. And some are beginning to tackle the challenges of achieving that.
And they also recognize that:
They are in the metering business.
And the billing and collections business.
And … the business of procuring cheap and reliable power supply (i.e. generation).
And they recognize that, under open access, they need to get the pricing right on all those lines of businesses.
Some in the sector may still harbor the illusion, but ECs are not, fundamentally, in the subsidy provision business – though they are in the business of cooperating with others in the implementation of subsidy assistance related to electricity.
Importantly, however, they are:
… in the advocacy business for rural electrification in their area.
Not because rural electrification or barangay electrification is some national priority program of the GMA or whatever Administration. But because they – the local ECs – are in business to foster the well-being – health, education, opportunity for self-expression – and economic opportunity of people in their area through electrification. It’s fundamental to what they do.
Such advocacy is not fundamental to the private distribution utilities – though they may participate in it to some extent.
Such advocacy, however, does cost money. It requires coordination across ECs and it requires activities at the national level.
EPIRA was a tectonic shift in the landscape for ECs – a sea change. And the ECs are just now beginning to get their sea legs. One thing that EPIRA has turned on it’s head is the old top-down approach to rural electrification. Although there will remain to be an important role for NEA, the driving force for rural electrification policy development – and the seat of its power – will derive from the ECs themselves as opposed to the ECs being the recipient of this policy.
Watch and see.