Dispatch from Crame No. 1193:
Sen. Leila M. De Lima on the call of CamSur Mayors and Cooperative Associations to reject Bicol Light Franchise

12/22/21

The people of Camarines Sur deserve better from the Senate.

The stakeholders that matter most: Incumbent Mayors of Camarines Sur, Bicol Electric Cooperative Association (BECA), and Philippine Rural Electric Cooperatives Association (PHILRECA) have all spoken out against House Bill No. 4437, or the bill granting franchise to distribute electric power in the City of Iriga and the towns of Baao, Balatan, Bato, Buhi, Bula and Nabua in Camarines Sur to Bicol Light and Power Corporation (Bicol Light).

I, as a daughter of Iriga City, join my fellow Irigueños and my province mates in Cam. Sur in opposing this measure.

The determining circumstance in this case is the existence of a legislative franchise granted to CASURECO III in the area that overlaps with those which Bicol Light seeks to serve. CASURECO III's franchise will not expire until 6 June 2029.

We are all witness to the dramatic turnaround of CASURECO III from a Category C electric cooperative in 2017 to a Category AA in 2019. This is testament to the resilience of this cooperative and its commitment to progress.

The grant of a second distribution franchise in the area will undo this progress and set aside the hard work of the people of CASURECO III and its members.

Bicol Light is a private company with very different goals from an electric cooperative. While the proponents behind Bicol Light promise the moon and the stars in terms of electrification, it does so with the understanding that it will get a not insignificant return of its investment. CASURECO III, on the other hand, seeks to provide electrification to its consumer-members within the framework of social justice and economic development. It is not driven by a capitalist appetite but by an overarching intent to serve and provide rural electrification.

Two power distribution companies cannot co-exist in one area. One is bound to put the other out of business because of the limited nature of the market. There is no doubt that Bicol Light can gather enough capital to outspend CASURECO III, but it is also certain that the consumers will pay the price of that competition.

If Bicol Light puts CASURECO III out of business, it will be free to force its consumers to pay the cost of their entry to the market. Bicol Light does not seek to end a monopoly. It wants to be one.

If our Congress wants to give a chance to anyone to serve the electricity needs of the people of Rinconada in Camarines Sur, we should give it to CASURECO III. We already gave them a franchise. We might as well honor it. They have been, thus far, proving that they can go the distance in providing good and affordable service to their consumer-members. It behooves us to let them stay the course and show to us that even electric cooperatives have their place in our country's progress.

I call on my colleagues to reject HB 4437. Let us honor the existing legislative franchise of CASURECO III and protect the people of Camarines Sur. ###

(Access the handwritten version, here: https://issuu.com/senatorleilam.delima/docs/dispatch_1193 )