Press Release: The National Electrification Administration (NEA) is saddened by the statement of Mr. Bongbong Marcos on his concept of Electric Cooperatives (ECs) as inefficient parts in the chain of progress during his interview with DZRH on 25 January 2022.
For more than five decades, the ECs play an important role in ushering economic activities particularly in the rural areas through the implementation of the Rural Electrification Program (REP) which his father, the late former President Ferdinand E. Marcos has started and signed into law on 4 August 1969, the Republic Act No. 6038 or “An Act Declaring a National Policy Objective for the Total Electrification of the Philippines on an Area Coverage Basis, Providing for the organization of the National Electrification Administration, the Organization, Promotion and Development of Electric Cooperatives to Attain the Objective, Prescribing Terms and Conditions for their Operation, the Repeal of R.A. No. 2717, and For Other Purposes”, as amended by Presidential Decree No. 269 enacted on 6 August 1973.
These laws gave primacy to ECs, in collaboration with the NEA, as a platform of development. They are non-stock, non-profit entities engaged in supplying electricity on franchised areas. ECs are mandated to do missionary electrification, to provide electricity service even in the remotest parts of the country for every Filipino to enjoy the benefit.
With the recently implemented Executive Order No. 156, “Instituting Measures To Ensure Consistent And Reliable Electricity Service In Inadequately Served Areas, Improve Performance Of Ineffective Distribution Utilities, And Achieve Total Electrification Of The Country” will clearly address the remaining issues on total electrification of rural areas.
There are a handful of ECs that are not performing at par to the operational parameters that can be attributed to political interference, armed conflicts, cultural beliefs, difficult geographical terrain, right of way problems and others. In spite of these, the ECs have shown resiliency and optimism to take on these challenges.
Per the latest EC overall performance assessment, only seven (7) ECs out of the one hundred twenty one (121) are considered as ailing. With the support from their MCOs, different government agencies and other relevant organizations, the National Electrification Administration (NEA) believes that these ECs will be able to rise up and perform better in the coming years.
The 114 ECs are being assessed using various parameters and are rated as either AAA, AA, A and B.
With this, the NEA hopes that Mr. Marcos will be enlightened on his perspective, that Electric Cooperatives are not the barriers of economic development but are vital instruments for the economic growth and development the Philippines hope to achieve.