The Manila Electric Company (Meralco) is facing significant pushback regarding its proposal to transform the South Cotabato Electric Cooperative (SOCOTECO) II into a stock corporation. The plan has raised alarms among the Alliance of Consumers in the Electricity Sector (ACES), a group representing diverse sectors across Mindanao.
Under the proposed restructuring, SOCOTECO II, which serves General Santos City and the surrounding Sarangani province, would see Meralco owning 70% of the entity, while the remaining 30% would be available for public investors.
ACES argues that this shift would alter ownership dynamics, transitioning from a cooperative model based on electricity consumption to one reliant on share acquisition. This could marginalize those unable to purchase shares, reducing their voice in utility management.
While acknowledging the existing challenges faced by SOCOTECO II, such as outdated infrastructure and service reliability issues, ACES insists that reforms should not undermine the cooperative ownership structure that has traditionally defined electric cooperatives.
Those unable to participate in share ownership risk being relegated from co-owners to ordinary ratepayers with diminished influence over the utility’s direction.
Alliance of Consumers in the Electricity Sector (ACES)
The ongoing debate highlights the broader implications of privatization in the energy sector, particularly in regions where electric cooperatives struggle to meet evolving energy demands.