Consumer advocacy group ILAW Pilipinas is calling on the National Electrification Administration (NEA) to revise its performance evaluation system for electric cooperatives (ECs), arguing that the current framework does not reflect the quality of service experienced by consumers.

The call comes after NEA’s latest EC performance report classified 81 of 121 assessed electric cooperatives as “Green,” 26 as “Yellow,” six as “Orange,” and eight as “Red” or “ailing,” based on evaluations conducted in the fourth quarter of 2025 and published on May 20.

“The seemingly arbitrary way NEA exercises its supervisory and regulatory powers has raised many questions,” claimed ILAW National Convenor Agnes “Beng” Garcia. “Many find that NEA’s EC performance ratings do not align with consumers’ experience with the actual performance and services of their EC.”

NEA’s 2024 evaluation framework measures ECs using seven indicators: Cash General Fund, Collection Efficiency, Accounts Payable, Result of Financial Operation, Net Worth, System Loss, and Reliability, including the System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI).

The report showed strong performances in Central Visayas, where CEBECO I, CEBECO II, CEBECO III, BANELCO, BOHECO I, and BOHECO II all received Green ratings. 

In contrast, four of BARMM’s seven ECs—TAWELCO, SULECO, BASELCO, and LASURECO—were classified as ailing. Despite this, LASURECO posted the country’s lowest electricity rate at PHP 5.34 per kilowatt-hour.

ILAW also questioned the report’s delayed release, saying its value as an accountability mechanism is reduced when findings are published months after the assessment.

The group further raised concerns over the Joint NEA Lumens Awards and PHILRECA Awards from the Wires, noting that some awardees have later been linked to corruption and mismanagement issues. 

It cited First Bukidnon Electric Cooperative, Inc. (FIBECO), which received recognition in 2025 before reports emerged that its former general manager was facing a qualified theft complaint over the alleged embezzlement of PHP 20 million.

ILAW Youth Convenor Francine Beatriz Pradez said NEA should expand its evaluation criteria to include customer satisfaction, complaint resolution, service restoration, innovation, and consumer price benchmarking.

“Electric cooperatives exist because of their member-consumer-owners,” said Pradez. “A strong performance rating should not only reflect sound institutional management. It should also reflect whether consumers receive reliable electricity, timely complaint resolution, transparent communication, and quality service. Good governance is ultimately measured by the confidence and trust of the communities being served.”

She also warned against complacency among highly rated cooperatives.

“Being tagged as green or recognized as a best-performing EC should not lead to complacency, particularly for ECs in areas where consumers continue to experience unreliable power,” stressed Pradez.

Garcia urged consumers to stay engaged in the power sector and demand accountability from both regulators and electric cooperatives.

“Let’s strive to empower ourselves, have more conversations as consumers and consumer groups about how the energy industry works,” Garcia stated. “As consumers, let’s keep asking questions and learning more about these issues. Let’s strive to protect our interests and call for systems to improve, especially since we are the ones who bear the cost for all this.”

What changes do you think should be made to NEA’s electric cooperative performance rating system? Join the discussion.

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