Consumer group raises concerns over NEA centralized procurement for ECs
- April 21, 2026
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Consumer advocacy group Laban Konsyumer Inc. has raised concerns over what it described as a gradual shift in the National Electrification Administration’s (NEA) approach to managing electric cooperatives (ECs), warning that recent policies may be drifting away from member-consumer interests.
The group pointed to the implementation of the Regional Procurement Hub (RPH), which centralizes key procurement decisions at the NEA level, saying the move could weaken the autonomy of electric cooperatives and reduce their ability to respond to local conditions.
NEA has defended the RPH as a mechanism intended to promote “efficiency” and “cost savings,” but Laban Konsyumer said the rationale has not been sufficiently explained, citing what it described as limited consultation with stakeholders.
“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.
The group warned that centralization may lead to loss of autonomy among ECs, delays due to increased bureaucracy, reduced operational flexibility, and risks in procurement decisions that may not match local requirements. It said these challenges could ultimately translate into higher costs and poorer service for consumers.
Laban Konsyumer also said the concerns surrounding the RPH may reflect a broader pattern in policy direction, raising questions on transparency, accountability, and public participation in decision-making processes affecting the power sector.
As electric cooperatives are owned by their member-consumers, the group stressed the importance of ensuring that stakeholders retain a meaningful voice in governance and policy decisions.
It urged NEA to provide a “clear and comprehensive explanation” of its policies, including the RPH, and to hold open consultations with ECs and their member-consumers, while reaffirming the cooperative principle of member ownership and control.
“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.
The group warned that without stronger transparency and accountability measures, public trust in the sector could erode further, with consumers ultimately bearing the impact.
What are your views on the centralization of procurement in the power cooperative sector—does it improve efficiency, or risk weakening local responsiveness?
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