Prolonged no-disconnection policy may disrupt economy: solon

    Obligations. Distribution utilities can no longer shoulder their customers’ ballooning arrears.

    The Association of Philippine Electric Cooperatives (APEC) said prolonging the no-disconnection policy for distribution utilities (DUs) and electric cooperatives (ECs) may do more harm than good as it may disrupt the firms’ ability to procure power supply.

    Sergio Dagooc, the party list group’s representative, said the no-disconnection policy may sooner or later “redound to the detriment of the economy.”

    His statement came after several calls were made for power utilities to indefinitely extend the no-disconnection policy.

    Dagooc said if DUs and ECs fail to pay their obligations to power generating companies, the latter would also not be able to pay their maturing obligations and be capable of buying fuel to generate electricity.

    Dagooc said a malfunction or disruption in the supply chain could also happen if power utilities do not get to pay the generating companies because of their customers ballooning arrears.

    “While distribution utilities and electric cooperatives may have varying financial capabilities to sustain their operations without revenues, nevertheless all consumers (with or without arrears) will still be affected when the entire power supply chain becomes unsustainable,” he said.