An Upsetting ‘Triple Upset’

By The Sunriser

In Iloilo City, café habitués cannot stop talking about what many now consider the greatest political upset in the city’s recent history—the dramatic shift in power involving Mayor Jerry Treñas and Rep. Julienne “Jam” Baronda.

Treñas, long regarded as the dominant political figure in the city, faced a triple setback following the surprise alliance between his camp and that of Baronda, whom he bypassed in March 2024 when he announced his daughter Raisa would run for district representative.

The first blow came when internal surveys reportedly showed Baronda leading in all scenarios—whether against the mayor or his daughter. Her strong numbers were attributed to social service programs credited with positively impacting many Ilonggos. This compelled Treñas to initiate backchannel talks with political allies of Baronda. The resulting agreement saw Baronda running unopposed by Raisa, and Raisa likewise facing no challenge from Baronda or former mayor Jed Patrick Mabilog, who had returned to the country after years abroad. Treñas, for his part, agreed not to seek a final term.

The second blow occurred during the vice mayoral race. Treñas supported incumbent Vice Mayor Jeffrey Ganzon, while Baronda’s camp fielded a surprise contender—her younger sister, former city councilor Lady Julie Grace “Love-Love” Baronda. Despite a highly charged campaign environment, Love-Love won with 132,310 votes, beating Ganzon by over 11,000 votes.

The third and final setback came in the congressional race. Treñas backed Mel Carreon, a perennial candidate, in his challenge against the incumbent. Team Uswag’s sample ballots reportedly included Carreon’s name, in what observers believe was an attempt to reduce Baronda’s margin relative to Raisa’s. The strategy did not succeed. Baronda garnered 177,707 votes—an increase of nearly 30,000 from her 2022 total and 8,090 more than Raisa.

With these results, many Ilonggos see Baronda as the political David who landed three decisive blows against the once-unshakable Treñas, marking what some now call the most significant political turning point in the city’s contemporary history.

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Are Electric Cooperatives Still Worth Supporting?

As of April 2025, the National Electrification Administration (NEA) has begun discussions with the Asian Development Bank to secure additional funding for electric cooperatives (ECs) nationwide.

The proposed financing aims to support the expansion and modernization of sub-transmission systems across the country. The broader goal is to improve power delivery, especially in underserved areas, by making ECs more reliable and efficient.

Despite the push for international support, NEA continues to rely heavily on taxpayer funding to fulfill its mandate. This dependence has drawn increased scrutiny from both government watchdogs and the public, particularly over how these resources are spent and whether they translate into real improvements.

Billions Spent, but Gains Uneven

In 2024 alone, NEA disbursed PHP 1.8 billion in loans to 36 electric cooperatives, a significant jump from PHP 1 billion the previous year.

Out of the total, nearly PHP 1.2 billion went to capital investments in more than 20 provinces, aimed at upgrading local power systems. Another PHP 607 million was approved as working capital for 11 ECs, including those in Capiz, Camotes Island, and Kalinga Apayao.

In a separate case, Bohol I Electric Cooperative (BOHECO I) received a PHP 13.33 million loan to rehabilitate its mini-hydro plant damaged by Typhoon Odette in 2021.

Through NEA’s Enhanced Lending Program, ECs have access to various loan packages for infrastructure, renewable energy development, generator acquisition, and disaster recovery.

However, critics argue that the returns on these investments remain questionable.

Bienvenido Oplas Jr., president of the think tank Minimal Government Thinkers, has labeled NEA as a “wasteful agency” for subsidizing what he describes as chronically inefficient ECs. He pointed out that even with a PHP 12.9-billion allocation in 2020 and ongoing government support, many ECs continue to report high system losses and substandard service.

Oplas also criticized NEA’s regulatory leeway for cooperatives, which allows system losses of up to 12 percent—twice the 6 percent cap for private utilities. He argued this imbalance results in higher electricity costs for consumers, particularly in rural areas.

Crippling Outages

The reliability of electric cooperatives has also been a growing concern in the tourism sector. In 2024, the Philippines’ tourism revenue hit PHP 760.5 billion, contributing 8.6 percent to the country’s GDP. But many popular tourist destinations continue to suffer from unreliable electricity—most of which is provided by ECs.

A study by energy advocacy group ILAW reported severe power supply issues in several tourism-dependent areas.

In Samal Island, the Northern Davao Electric Cooperative (NORDECO) was given a score of only 2.45 out of 10 by local businesses. Frequent blackouts and poor service response have reportedly cost the local tourism sector around PHP 50 million annually.

Siargao Island, under the Siargao Electric Cooperative (SIARELCO), also faces similar issues, with businesses citing PHP 100,000 in losses per incident due to outages and equipment damage. SIARELCO earned a score of 4.6 out of 10.

Oriental Mindoro Electric Cooperative (ORMECO) received a rating of 4.5. Unscheduled power interruptions have forced some establishments to refund customers or offer discounts.

In Siquijor, frequent brownouts have caused food spoilage and equipment damage, prompting local columnist Iris Gonzales to comment that the province remains plagued by both “black magic and blackouts.”

Misuse and Failures

NEA has taken disciplinary actions against ECs for mismanaging public funds. In early 2024, it removed all nine board members and suspended the general manager of Negros Occidental Electric Cooperative (NOCECO) for approving unauthorized bonuses and retirement benefits.

Fourteen officials from the same cooperative were permanently disqualified from holding leadership roles due to irregular fund disbursements.

Later that year, NEA also placed six board members of Nueva Ecija II Area 2 Electric Cooperative Inc. (NEECO II Area 2) under preventive suspension. The action came after unauthorized withdrawals were found in the cooperative’s retirement fund. The NEA sought the assistance of the National Bureau of Investigation to determine whether criminal charges were warranted.

Senator Win Gatchalian has since called for tighter monitoring of ECs, warning that corruption not only damages public trust but also disrupts service delivery.

Inadequate Infra Investment

Some ECs have also been flagged for failing to modernize despite receiving significant resources.

In 2024, Senator Grace Poe raised concerns that the Central Negros Electric Cooperative (CENECO) lacked the technical and operational capacity to support the region’s development goals.

Meanwhile, a report from the Institute of Contemporary Economics found that ECs in Panay and Guimaras used only PHP 2.38 billion—or 22.6 percent—of the PHP 10.52 billion allocated for capital spending between 2022 and September 2024. Only 3.1 to 3.7 percent of the funds went to critical infrastructure, leaving the power grid underdeveloped and vulnerable to outages.

NEA itself has not been spared from criticism.

In its 2023 audit, the Commission on Audit flagged the agency for failing to monitor rural electrification programs. As of December 31, 2023, nearly PHP 992 million in subsidy funds remained unliquidated. These funds were intended for electrification projects that should have been liquidated within 90 days of completion.

In August 2024, NEA admitted that its 100 percent electrification target by 2028 would be delayed by two to three years. Officials cited lack of funding and logistical setbacks as key reasons for the shift in timeline.

Policy Reform on the Horizon

Calls for reform have grown louder. House Resolution No. 1302, filed in 2023 by Deputy Majority Leader Erwin Tulfo and several lawmakers, seeks to review and potentially revoke the franchises of consistently underperforming ECs.

The resolution also encourages the creation of new cooperatives or exploring other business models to ensure better service in underserved communities.

Columnist Ben Kritz observed that these issues are not new and only receive attention once a cooperative completely fails. He stressed the need to address the long-standing weaknesses in electricity distribution outside areas covered by major private utilities.

Oplas, for his part, has long advocated for the abolition of NEA and the transformation of ECs into privately owned corporations regulated by the Securities and Exchange Commission. He believes this would eliminate their dependence on subsidies and push them toward performance-based accountability.

Amid growing losses, governance failures, and underinvestment, the question persists: Are electric cooperatives delivering enough value to justify continued public spending?

Unless significant reforms are introduced, taxpayers will continue to foot the bill for a system many view as outdated and underperforming—raising doubts about whether electrification goals can be achieved, and whether rural and remote communities will ever receive the energy reliability they were promised.