ILECOs’ Crucial Decisions

The entry of MORE Electric and Power Corp. (MORE Power) into the franchise areas of the Iloilo Electric Cooperatives (ILECO I, II, and III) is a pivotal moment for electricity distribution in Iloilo Province and the country as well.

With the Supreme Court upholding the expansion of MORE Power’s franchise, the ILECOs are confronted with tough choices that will define their future and, more importantly, the welfare of the consumers they serve.

The expansion of MORE Power into new territories, facilitated by Republic Act 11918, has ignited a competitive environment.

Local officials, particularly those in the town of Pavia, have already voiced their support for this move, citing the potential benefits of lower electricity rates and improved services for their constituents. This is a clear signal that the landscape of electricity distribution in the province is changing, and the ILECOs must adapt accordingly.

The ILECOs’ decision-making should be guided by one overriding principle: what is best for the consumers. The cooperatives have been pillars in their communities for decades, providing power to thousands of households and businesses.

However, with the advent of a new player offering competitive rates and a proven track record, the ILECOs must carefully consider their options.

This is not just about preserving the status quo; it’s about ensuring that the consumers—who have been loyal to the cooperatives for years—are not left behind in this transition.

There are viable paths forward. The cooperatives could enter into joint ventures or leasing agreements with MORE Power, as suggested during Senate discussions.

Such collaborations could help stabilize rates, reduce operational costs, and ensure that the cooperatives continue to play a role in the province’s electricity distribution.

MORE Power’s joint venture with Central Negros Electric Cooperative (CENECO) in Negros is a model worth considering. It demonstrates that with the right partnership, both parties can thrive and, more importantly, deliver better service to consumers.

The path forward for the ILECOs is fraught with challenges. As MORE Power potentially captures a larger market share, there are concerns about the financial sustainability of the remaining ILECO customers.

Simulations suggest that the exodus of customers to MORE Power could lead to significant rate hikes for those left behind, exacerbating the financial burden on a shrinking customer base.

The warning from former Senator Ralph Recto during the deliberation of RA 11918 about the potential rate hikes for remaining ILECO customers if a significant portion migrates to MORE Power should not be taken lightly.

However, this concern should also push the cooperatives to be more innovative in their approach, finding ways to keep their services competitive and attractive to their existing customer base.

Ultimately, the ILECOs have a choice: to resist change and potentially face declining relevance or to embrace this new era with a focus on what truly matters—the welfare of the consumers. By choosing the latter, the ILECOs can ensure that they not only survive but are also celebrated for putting the needs of their consumers first. The future of electricity distribution in Iloilo Province hinges on this critical decision.

As the ILECOs navigate these uncharted waters, they must do so with a clear vision and a commitment to the people they serve. The choices they make today will determine whether they remain a trusted provider of power in the years to come.

In the end, what is best for the consumers must be the guiding light in this challenging yet opportunity-filled journey.