Mindanao Consumer Alliance Opposes Meralco Takeover of SOCOTECO II

The Alliance of Consumers in the Electricity Sector (ACES) of Mindanao has formally expressed its opposition to a Meralco proposal to convert the South Cotabato Electric Cooperative (SOCOTECO II) into a stock corporation, warning of a potential loss of consumer sovereignty.

Coalition Concerns and Membership

The ACES Mindanao coalition—comprising vendors, indigenous peoples, transport groups, the religious sector, media, and the youth—argues that restructuring the cooperative into a for-profit entity would fundamentally alter the relationship between the utility and its users. The group emphasizes that under the current non-stock, non-profit model, ownership is based on membership and electricity consumption. They fear that a corporate shift would marginalize those unable to purchase shares, relegating them to ordinary ratepayers with "diminished influence" over the utility’s direction.

Details of the Meralco Proposal

Under the proposed "equity infusion arrangement," SOCOTECO II—which serves General Santos City and Sarangani province—would be restructured as follows:

Majority Control: Meralco would secure a 70% majority stake in the new corporate entity.

Minority Ownership: The remaining 30% would be opened to public investors and existing member-consumer-owners.

Operational Continuity: Meralco senior vice president Arnel Casanova has clarified that the plan is intended as a partnership rather than a takeover, stating it would retain the cooperative's name, existing assets, and current employees.

Context of Modernization

The proposal comes as SOCOTECO II faces intense scrutiny from the National Electrification Administration (NEA) over aging infrastructure and persistent system losses, which have recently ranged between 12% and 15%. While ACES acknowledges the urgent need for modernization, they contend that infrastructure upgrades should not come at the expense of the cooperative ownership model that has historically defined rural and regional electrification in the Philippines.

The board of SOCOTECO II reportedly rejected the Meralco bid earlier this year, citing concerns over governance and the lack of a binding capital expenditure commitment. However, discussions remain highly active as competing offers from other private entities, such as the Razon-led IGNITE Power, continue to shape the debate over the region's energy future.