A consumer alliance in Mindanao has voiced strong opposition to Manila Electric Company's (Meralco) proposal to restructure South Cotabato Electric Cooperative (SOCOTECO) II into a stock corporation, warning that it could strip member-consumers of their ownership rights.
The Alliance of Consumers in the Electricity Sector (ACES) of Mindanao, which represents vendors, indigenous peoples, transport groups, religious organizations, media, and youth, expressed concern that the plan would shift control from electricity users to shareholders.
Under the proposal, SOCOTECO II — which serves General Santos City and Sarangani province — would be converted into a corporate entity, with Meralco owning 70 percent and the remaining 30 percent offered to public investors.
While acknowledging that SOCOTECO II faces challenges in upgrading infrastructure and improving service reliability, ACES argued that such reforms should not come at the expense of the cooperative ownership model.
"Those unable to participate in share ownership risk being relegated from co-owners to ordinary ratepayers with diminished influence over the utility's direction," the group said in a statement.
Meralco has framed the move as a way to modernize operations and attract private investment, reflecting a broader trend of private sector involvement in power distribution where electric cooperatives have struggled financially. However, ACES maintains that cooperative membership should remain the basis of ownership, not the ability to buy shares.