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Consumer advocacy groups are becoming increasingly vocal in demanding accountability from electric cooperatives (ECs), particularly those perceived to be underperforming. At the forefront of this movement is the Partners for Affordable and Reliable Energy (PARE), which has called on Congress to exercise stricter oversight and deny franchise renewals to ECs that fail to meet basic technical and regulatory standards.
This growing pressure reflects a broader shift in public sentiment: consumers are no longer willing to tolerate persistent power outages, high electricity rates, and what they perceive as weak governance within ECs. Instead, they are pushing for reform, competition, and performance-based accountability.
Additionally, ECs are increasingly being evaluated not only as community institutions but as regulated utilities whose performance can be measured, compared, and challenged.
A Call for Congressional Oversight
PARE has taken a firm stance, urging lawmakers to scrutinize EC franchise renewals more rigorously. The group argues that the privilege of operating a distribution utility must come with clear obligations—reliable service, reasonable rates, and adherence to regulatory benchmarks.
“With around 30 electric cooperatives seeking franchise renewals, the current evaluation system must be reviewed and overhauled to ensure accountability,” declared PARE.
It also emphasized that franchise evaluation must extend beyond compliance on paper and the submission of technical reports,arguing that regulatory review should reflect the real-world experience of consumers who endure repeated outages, fluctuating service quality, and daily disruptions caused by unreliable electricity. “Franchise renewals should not be granted unless cooperatives can demonstrate clear compliance, transparency, and a roadmap for improvement,” stated PARE.
Other consumer groups have also intensified calls for stricter oversight of ECs. Laban Konsyumer Inc. (LKI), for instance, urged the National Electrification Administration to go beyond comparing electricity rates and instead release a full assessment of ECs’ service performance, including reliability, system losses, and financial health. The group stressed that focusing on lower rates alone shortchanges consumers if service quality remains poor, and called for greater transparency and accountability across the sector.
In Cebu, another consumer group, Cebu Electricity Rate Advocates (CERA), flagged rising electricity costs and pointed to inefficiencies in cooperative systems, including aging infrastructure and high technical losses, while calling for a transparent review of distribution performance and reforms to improve efficiency and reliability.
CERA convenor Nathaniel Chua said that three ECs implemented recent power rate increases: Cebu Electric Cooperatives (CEBECO) I, II, and III. “While we recognize the complexities of the energy market, the financial impact on Cebuano households must be balanced with more aggressive utility-side cost-saving measures,” he pointed out.
Meanwhile, in Mindanao, the Davao Consumer Movement (DCM) has urged the Northern Davao Electric Cooperative (NORDECO) to consider divesting its assets to the Davao Light and Power Company, warning that continued dispute over franchise ownership could lead to further depreciation of asset value, ultimately affecting consumers who are the cooperative’s member-owners. The group issued the appeal amid NORDECO’s continued assertion of its right over the franchise area covering Davao de Oro and Davao del Norte, including Samal Island, despite ongoing transition efforts.
The dispute stems from developments in which Davao Light was authorized to take over NORDECO’s franchise area, following regulatory and policy actions.
The implication is clear: consumer groups are reframing the debate. Rather than viewing ECs as protected entities, they are positioning them as service providers that must compete on reliability and efficiency.
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ISELCO and Ongoing Concerns
PARE cited Isabela Electric Cooperative (ISELCO) as a cooperative that has fallen short of key regulatory standards.
It pointed to an Energy Regulatory Commission (ERC) report released in late 2025, which showed that the cooperative met only six out of 46 requirements under the Philippine Distribution Code. It also recorded a feeder loss of 10.84%, exceeding the prescribed cap of 10.25%, and was assessed as only partially compliant overall. In addition, the cooperative did not submit its required Philippine Grid Code compliance report for 2024.
PARE added that gaps in areas such as consumer access to alternative energy options, service transparency, and the accuracy and verification of metering systems further illustrate how operational inefficiencies and weak compliance ultimately translate into higher costs and poorer service for consumers.
“This case is not about singling out Iselco I, but about exposing systemic flaws in how franchise renewals are reviewed and granted,” stressed PARE. “If this can happen to Iselco I, then other cooperatives may be facing similar problems.”
PALECO Under Scrutiny
In 2024, Senator and former ACT-CIS representative Erwin Tulfo highlighted the need for an immediate review of the franchise of Palawan Electric Cooperative (PALECO), citing a long record of underperformance spanning nearly five decades since its establishment.
“I think it’s high time that the Committee on Franchise will have to review the franchise of PALECO,” he stated. “Since 1974, people of Palawan have been suffering the same problem over and over again.”
PARE has documented these issues extensively, noting that since 2017, Palawan has endured recurring and at times prolonged power disruptions, with some communities facing outages lasting up to 18 hours daily. These conditions have strained livelihoods, discouraged investment, and eroded public confidence in essential services.
The group also argued that when unreliable electricity persists over many years, coupled with weak enforcement of obligations and ineffective oversight, the issue is no longer confined to a single EC but points to deeper failures in the broader governance and regulatory system.
In July 2025, PALECO ranked second nationwide among ECs with the highest power rates per kilowatt-hour, with the Busuanga Island Electric Cooperative (BISELCO) taking the top spot.
At the time, other provinces, including Occidental Mindoro, Oriental Mindoro, and Catanduanes, also reported elevated rates alongside recurring power interruptions.
The NORDECO Turning Point
Recent developments suggest a turning point in Davao’s energy landscape. NORDECO has reportedly acknowledged that its motions for reconsideration, filed in local courts to block a transition to a new distribution entity, have been denied. This effectively clears a significant legal hurdle in the shift toward a new service provider.
On January 14, 2026, the Supreme Court dismissed petitions filed by NORDECO, including its bid to nullify the law and secure a temporary restraining order. In parallel, a Regional Trial Court in Panabo City issued a writ of possession authorizing the transfer of control over Samal Island’s distribution assets to Davao Light.
For consumer advocates, this development reinforces calls for accountability and transition, as ongoing disputes have drawn strong reactions from stakeholders and consumer groups, urging clearer direction and improved service delivery in affected areas.
The NORDECO case highlights a key dynamic in the evolving energy landscape: the increasing willingness of regulators and stakeholders to consider structural changes when existing systems fail to deliver. It also underscores the growing influence of consumer voices in shaping these outcomes.
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Measuring What Matters: Reliability Benchmarks and Performance Gaps
Beyond public frustration, the performance of ECs can be assessed through established regulatory benchmarks and globally recognized reliability metrics. In the Philippines, the NEA evaluates ECs using its Key Performance Standards (KPS), which cover financial, institutional, technical, and reportorial criteria. Technical performance, particularly reliability, accounts for a substantial portion of this evaluation, underscoring its importance in determining whether an EC is delivering acceptable service.
At the core of reliability assessment are two widely used indicators: the System Average Interruption Frequency Index (SAIFI) and the System Average Interruption Duration Index (SAIDI). SAIFI measures how often customers experience power interruptions, while SAIDI captures the total duration of outages over a given period. Together, they provide a clear, quantifiable picture of the consumer experience and are standard tools used by regulators and utilities worldwide.
According to a study by the Philippine Institute for Development Studies (PIDS), the national average electricity rate in 2021 was ₱9.42 per kilowatt-hour, with ECs charging around ₱3 per kWh more than private distribution utilities on average.
Across all major island groups, ECs consistently posted higher average rates compared to private utilities. Within the cooperative sector, Luzon recorded the lowest average prices, while among private distribution utilities, the Visayas registered the most competitive rates.
Chua stressed the importance of efficiency across the power sector, noting that stronger collaboration between utilities, regulators, and consumers is essential to maintain affordability and reliability in Cebu’s electricity supply.
“Operational excellence is the best hedge against inflation,” he said. “Unlike private utilities with greater access to capital for modernization, electric cooperatives often face structural constraints that hamper rapid upgrades and efficiency improvements.”
Ultimately, the message from consumers is clear: access to electricity is not enough. Reliability, affordability, and accountability must follow. As policymakers respond to these demands, the future of ECs will likely be defined not only by their historical role but by their ability to meet the standards of a more informed and engaged public.
Sources:
https://powerphilippines.com/consumer-group-urges-nea-to-assess-power-co-ops-beyond-rates/
https://insiderph.com/consumer-group-flags-rising-electricity-rates-in-cebu
https://businessmirror.com.ph/2026/03/18/davao-electricity-consumers-urge-nordeco-to-sell-assets
https://www.pna.gov.ph/articles/1218349
https://mindanaodailynews.com/nordeco-urged-to-seek-tro-mount-peaceful-resistance-vs-dlpc-takeover
https://www.slideshare.net/slideshow/performance-tools-for-electric-cooperatives/27801801