Consumer group questions NEA procurement centralization

A consumer advocacy group has raised concerns over what it described as a gradual shift in the National Electrification Administration’s approach to managing electric cooperatives, warning that recent policies may be moving away from member-consumer interests.

Laban Konsyumer Inc. said the implementation of the Regional Procurement Hub, or RPH, centralizes key procurement decisions at the NEA level and could weaken the autonomy of electric cooperatives while reducing their ability to respond to local conditions.

The group said NEA has defended the RPH as a mechanism meant to promote efficiency and cost savings, but argued that the rationale has not been sufficiently explained and that stakeholder consultation has been limited.

“NEA’s claim that the RPH promotes “efficiency” and “cost savings” is not enough, especially given the lack of clear explanation and meaningful consultation surrounding these policies. Under these circumstances, it is reasonable to ask: whose interests are ultimately being served?,” the group said in a statement.

Laban Konsyumer warned that centralization may result in a loss of autonomy among electric cooperatives, delays caused by added bureaucracy, reduced operational flexibility, and procurement decisions that may not match local requirements.

The group said these challenges could eventually translate into higher costs and poorer service for consumers, who ultimately bear the effects of decisions in the power sector.

It added that concerns surrounding the RPH may reflect a broader pattern in policy direction, raising questions about transparency, accountability and public participation in decision-making processes affecting the electricity industry.

Because electric cooperatives are owned by their member-consumers, Laban Konsyumer said stakeholders must retain a meaningful voice in governance and policy decisions.

The group urged NEA to provide a clear and comprehensive explanation of its policies, including the RPH, and to hold open consultations with electric cooperatives and their member-consumers.

It also called on the agency to reaffirm the cooperative principle of member ownership and control, a key feature that distinguishes electric cooperatives from investor-owned utilities.

“Electricity is a basic service. It must not be managed in a way that removes power from the very people who depend on it,” the statement read.

Laban Konsyumer said that without stronger transparency and accountability measures, public trust in the sector could erode further, with consumers ultimately bearing the impact.