September 11, 2024 – Assistant Minority Leader Sergio Dagooc recently participated in the initial deliberation and preliminary determination of Privilege Speech No. 376, delivered on August 27, 2024. The speech addressed significant concerns regarding the Zamboanga City Electric Cooperative (ZAMCELCO) and its investment management contract with Crown Investment Holdings, Inc. and Desco, Inc. (Crown-Desco).
Drawing from his previous involvement with Task Force Duterte Power, a special initiative aimed at addressing power-related issues in the region, AML Dagooc provided critical insights into ZAMCELCO’s operations. His in-depth investigation uncovered several alarming issues, most notably the widespread meter tampering among large-load consumers. Approximately 800 consumers were found to be manipulating their meters to artificially lower their recorded electricity consumption, resulting in significant revenue losses for ZAMCELCO and unfairly shifting the financial burden onto honest consumers.
Despite initial improvements during the task force’s activities, system losses began to climb again after its conclusion. This regression suggests that the root causes of the inefficiencies were not adequately addressed or that there was a lack of sustained commitment to maintaining the improvements.
AML Dagooc emphasized the urgent need for swift action to address the most pressing issues, particularly the widespread meter tampering. He suggested implementing advanced metering infrastructure, conducting regular audits, and imposing stricter penalties for fraud.
Given the cooperative’s mounting debt, AML Dagooc recommended a thorough review and potential restructuring of ZAMCELCO’s financial obligations. This process would involve working closely with creditors, regulatory bodies, and potentially seeking government intervention to ensure the cooperative’s long-term viability.
To tackle the high system losses, AML Dagooc proposed a comprehensive overhaul of ZAMCELCO’s distribution network. This could include upgrading outdated infrastructure, implementing smart grid technologies, and improving maintenance practices.
The committee will continue to monitor the situation closely and work towards implementing these recommendations to ensure the efficient and sustainable operation of ZAMCELCO.
