Group urges NEA to weigh service, not just rates

Laban Konsyumer Inc. (LKI) is pushing the National Electrification Administration (NEA) to release a full comparative analysis of electric cooperatives’ (ECs) service performance—not just rates.

The group said that focusing solely on power prices without evaluating reliability and adequacy shortchanges consumers.

“Instead of comparing ‘apples to oranges’, Laban Konsyumer Inc asks the National Electrification Administration to come out with a comprehensive analysis and service records of the country’s electric cooperatives,” LKI said in a statement.

The appeal comes after NEA revealed that 90 out of 121 ECs charged PHP 1–4 per kilowatt-hour less than Meralco from January 2024 to June 2025, based on a PHILRECA-led comparison of residential rates.

LKI acknowledged that many ECs offer cheaper power, but stressed that consumers also deserve “substantial, adequate, and sustainable electricity service.”

“It must be unfair for the other distribution facilities to be compared with electric cooperatives that offer mediocre service,” the group added.

Citing a 2019 Asian Development Bank report by Shinichi Taniguchi, LKI noted stark disparities in electrification—98 percent in Metro Manila versus just 40.9 percent in parts of Mindanao—as evidence of urban–rural service gaps.

“These are not cheap but will definitely bring stability in consumer electricity especially during calamities,” LKI said, referring to private utility investments in disaster‑proofing and reserve capacity.

LKI urged NEA to include key metrics beyond price—like service reliability, system losses, and financial health—and to provide historical updates on the rural electrification program that began in the 1960s.

They added, “That is why the functions of the Department of Energy and the Energy Regulatory Commission are vital to the consumers, they should be balancing the cost and services these distribution facilities are providing.”

LKI closed by reiterating its demand for “full transparency and accountability in the electrification sector” and urged NEA to refocus on delivering reliable, affordable, and efficient energy to all Filipinos.

The NEA, established in 1969 under Republic Act 6038, leads the country’s rural electrification program and oversees 121 ECs.

It followed earlier, fragmented electrification efforts dating back to the 1960s under the Electrification Administration.

 

By 2019, the Philippine Rural Electrification Program had brought electricity to roughly 15 million connections—around 45 million Filipinos—raising access to about 95 percent.

Yet, ECs often face challenges like undercapitalization and poor operational performance.

Electric cooperatives were modeled on U.S.-style rural systems, adopted through pilot projects such as MORESCO in Mindanao and VRESCO in Negros, and rapidly expanded under NEA oversight.

However, many faced financial instability and management issues, prompting reforms including tariff adjustments and cooperatives’ consolidation.

In contrast, private utilities – like MORE Power in Iloilo City, Davao Light in Mindanao, Visayas Electric Co. of Cebu and Meralco in Metro Manila and – invest more heavily in infrastructure resilience, including disaster-proofing, which may yield higher reliability at higher cost.