This is Chapter 5 of my work in progress: Electric Dreams
September 11, 2001 or 9/11 is usually associated with the two jumbo jetliners that crashed into the World Trade Center.
For me, 9/11 is associated with another event that has greatly affected my life these past eight years. On that day, Fr. Francisco “Paking” Silva accepted his appointment to the position of NEA Administrator. That was not the first time the position had been offered to him, but he had always refused previous offers. When I first met him, he said he couldn’t explain why he finally accepted.
Whatever his reason, it’s a good thing he accepted the position.
At that particular juncture, NEA and the rural electrification movement needed his brand of leadership. Both NEA and the ECs needed a credible and forceful leader to help them navigate the turbulent environment ushered in by EPIRA.
Because he accepted, I have gotten to know and have become part of rural electrification, which I consider one of the most successful and significant programs in the Philippines. And also, one of the most challenging.
A phone call from NEA
The phone call I got from NEA in 2001 was not directly from Fr. Paking Silva. The one who called me was Rolly Kintanar, former NPA commander in chief. He said someone wanted to talk with me, and then passed the phone to Fr. Silva.
Our initial conversation was brief. He asked if I would be willing to help out in his work among the electric cooperatives. I agreed, without knowing much about electric coops or NEA.
Rolly Kintanar or RK had served as my consultant during my short stint in government as director-general of TESDA. He was my liaison to former rebels who needed skills training. We would talk from time to time about how we could continue to pursue our vision of social justice and nation-building as part of government, instead of waiting after we have overthrown the government, which was our orientation when we were part of a revolutionary movement.
I never found out exactly how RK got connected to Fr. Silva, other than their being both from Cebu. I assume that my name came up when they were talking about who could help in “change management” among the electric cooperatives, under EPIRA.
The name of Fr. Paking Silva was known to me from way back, but I don’t remember meeting him personally. Two things I remember about him : 1) That he innovated the blackboard newspaper as a parish priest of Moalboal town in Cebu, and 2) That he led a massive and militant protest action related to electricity, involving switching off lights, during martial law. Beyond these two items, not much more.
He says that he first saw and heard me speak during the 1971 convention of the Philippine Priests Incorporated, long before the declaration of martial law, and had thought of getting in touch with me sometime later.
Later turned out to be 30 years later, in 2001.
By then Fr. Paking had acquired impressive credentials from his experience in rural electrification. As a parish priest of Toledo City, he had been asked to organize CEBECO III in 1979, and served as its first president. Soon after, he was appointed by NEA Administrator Pedro Dumol as the electric coop’s general manager.
After a few years, he was asked to be the concurrent manager of CEBECO I which was having serious problems. Later, after the general manager of CEBECO II retired, he served as general manager of all three CEBECOs.
Nationally, he had also served as president of FECOPHIL, and as a member of the Board of Administrators of NEA.
He offered me an appointment as his consultant in NEA, but I don’t really remember when the formalities happened. What I remember is the first significant activity he asked me to join – the strategic planning workshop of NEA in January 2002. That was when I first realized the implications of EPIRA, especially on the electric cooperatives.
One could say that Fr. Paking Silva introduced me in 2002 to rural electrification in the time of EPIRA. It sounds a bit like Gabriel Garcia Marquez’ novel, “Love in the Time of Cholera.”
Initial learnings
Before 2001, I knew nothing about electric cooperatives. I can’t remember hearing about them in the countless meetings and forums I have attended as a social activist, even during the debates on EPIRA.
It reflects the Metro Manila bias on national issues. Advocacy networks who were addressing the energy and electricity sector did not seek out the electric coops or NEA. Until I got to work with Fr. Paking, like any Metro Manila electric consumer, my image of the electric coops is that they are minor operations, taking care of the households that were not reached by MERALCO in Metro Manila and surroundings, VECO in Metro Cebu, Davao Light in Metro Davao, and other large distribution companies.
My first realization was that the image I had of electric coops as minor operations was all wrong. In fact, the majority of households in the Philippines are served by the 119 electric coops. But of course the residents and institutions in the major cities consume more electricity, which makes them more profitable service areas, attracting greater public attention.
My second realization was that the ECs are very diverse. They vary greatly in size. NEA classifies the 119 ECs according to three criteria: 1) Number of service connections, 2) Annual sales of megawatt hours or MHW, and 3) Circuit of kilometer lines.
By these combined criteria, there are 36 ECs that are “mega large,” and 30 ECs that are “extra large.” The rest of the 34 ECs are large (20), medium (9), and small (5). The total is less than 119 because not all of the ECs have submitted themselves to classification.
Other than size, the ECs vary greatly in performance. Again, NEA has an annual categorization of ECs which is the basis for giving annual awards, which started in 1984. I recently met the very first awardee for being an outstanding GM, Benhur Salimbangon of CEBECO II. After he retired, he ran for Congress and won.
There are many more criteria for assessing performance. The two main operational items are “systems loss” and “collection efficiency.” There are also financial items like payments to the generation and transmission company, payment of NEA loans, “non-power costs” and financial operations.
Based on the points system of NEA, the best performing ECs are called A plus, followed by A. As of May 2009, there are 62 ECs that are A plus, and 12 ECs that are A, a substantial majority. The ECs that have less satisfactory performance are a minority, with 14 ECs categorized as B, and 4 ECs each for category C, D, and E.
With such diversity of ECs, what kind of fair generalization can one make about the electric cooperatives?
Very little, really. Whenever friends in media or in activist circles cite some bad news about an electric coop, all I could offer them was the over-all perspective that I had acquired about the range of diversity of the ECs, so that they would avoid the mistake of jumping to summary judgments about ECs as a whole.
This is especially important because there are interested parties who will use any negative news about ECs as material for their critique of the very nature of the ECs and their relationship to NEA. The unspoken direction of their argument is that the ECs are better placed in the hands of more efficient private management, which is one of the options opened up by EPIRA.
There are other policies of EPIRA whose full effects will not be felt for a while, but they will place all ECs under pressure, whatever their size and whatever their performance.
Accelerated learning
Though EPIRA’s challenges loomed on the near horizon, what demanded more immediate attention from Fr. Paking Silva as NEA Administrator were crisis-level problems of ECs. Whatever their roots in the past, the problems had grown worse over the years, reaching a crisis stage marked by public protests.
Father Silva’s approach to finding solutions to the crisis areas also became my source of rapid learning. Once I asked him what he expected from me as his consultant. His response was simple. Just be ready when I ask you or call yo
Instead of attending a series of orientation and training sessions, I was introduced to the world of electric cooperatives in the midst of conflicts that invited Fr. Silva ‘s intervention. They gave me insights into how the ECs operate, what problems they face, and the complex relationship they have with NEA.
The first “flying visit” I made was to Negros Occidental and the CENECO electric coop. There were public demonstrations against the coop. Fr. Silva flew in and observed the rally incognito. Then he asked me to fly in with him. “Talk to the union,” he said. “I will talk with the Board members, the bishop, and the priests leading the protest.”
It was a memorable experience. I was intrigued by the name of the union – CURE, for CENECO Union of Rational Employees. The “rational” in their name still amuses me. They also talked to me about “board passers.” It was the practice of the Board members to have a quota of 10 casuals they hire for the EC.
During some small talk with a board member, I realized what was at stake. He explained why he chose to run for the board of CENECO: “Do you know that our annual sales is bigger than either the annual budget of Bacolod City or the annual budget of the province of Negros Occidental?”
At a later meeting, I told Fr. Silva what I learned from the union: “Friedrich Engels was right. If you want to know how a factory actually works, ask the workers.” It is typical of Fr. Silva’s quick decision-making that there and then, he said we should encourage the formation of unions in all ECs. Where the staff don’t want a union, they should form an association.
Sometime after, he invited the leaders of unions and associations to a conference in Toledo City, where he asked them to form the National Solidarity of Unions and National Solidarity of Associations, NSU/NSA. Typical also of his style of leadership, he appointed me their national adviser, though he did ask them for their approval, which they gave.
to be continued…
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