Consumers question NEA cooperative ratings

Consumers question NEA cooperative ratings
PCO
Published on

MANILA — Consumer advocacy group Partners for Affordable and Reliable Energy (PARE) urged the National Electrification Administration (NEA) to review its electric cooperative performance evaluation system, saying the ratings do not always match the service consumers experience.

The call came after NEA released its 2025 Overall Performance Assessment, which classified 91 electric cooperatives as AAA and recognized several others for improving their ratings.

Despite the high marks, many consumers continue to complain about prolonged brownouts, unreliable service, high system losses, slow power restoration during calamities, and rising electricity costs, PARE said.

"Consumers are not interested in whether their cooperative is AAA on paper. They want to know why they still face brownouts, high system losses, unreliable service, and rising costs," said Nic Satur Jr., chief advocate officer of PARE.

"The ultimate measure of performance should be the experience of consumers, not a rating in a report," he added.

PARE noted that some cooperatives received improved ratings in the latest assessment. The Palawan Electric Cooperative (Paleco) moved from AA to AAA, while the Misamis Occidental I Electric Cooperative (MOELCI I) improved from A to AA. The Batangas II Electric Cooperative (Batelec II) and the First Catanduanes Electric Cooperative (Ficelco) retained their AAA ratings.

However, the group said consumers in some of these franchise areas continue to report concerns over service reliability, affordability, and overall performance.

According to PARE, NEA's evaluation system focuses on financial, operational, technical, and institutional compliance. While these indicators remain important, the group said consumers question whether the framework adequately reflects the realities faced by households, businesses, and farmers that rely on electricity daily.

PARE said the gap between ratings and consumer experience risks eroding public trust in the evaluation system.

"In some communities, consumers even joke that AAA no longer means excellent performance," Satur said.

He cited comments from Paleco consumers, including resident Tony Cabrestante, who jokingly referred to the cooperative's AAA rating as "Araw Araw Ara Kuryente" because of recurring power interruptions.

"The remark may be humorous, but it reflects deeper frustration among consumers," Satur said.

The group urged NEA to incorporate direct consumer feedback into future evaluations. It recommended including customer satisfaction surveys, complaint resolution rates, power restoration performance during calamities, compliance with the Anti-Red Tape Authority's Automatic Generation Rate Adjustment mechanisms, transparency measures, and other indicators that capture consumer experience.

PARE also said NEA's role extends beyond evaluating electric cooperatives. As the agency responsible for supporting the sector, it must ensure that technical assistance, financial support, and regulatory interventions translate into better service and improved consumer welfare.

"The question consumers ask is simple: If a cooperative receives a high rating, why are they still experiencing prolonged brownouts, unreliable service, and expensive rates?" Satur said.

"Until that is answered, the evaluation system will remain in doubt."

PARE said electric cooperative performance should be measured not only through compliance reports but also through the affordability, reliability, and responsiveness of the services delivered to consumers.

"Consumers deserve a rating system that reflects reality, not just paperwork," the group said. PR

SunStar Publishing Inc.
www.sunstar.com.ph