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Electric cooperatives (ECs) in the Philippines function as private, non-profit, member-owned entities that provide public distribution services, occupying a unique space in the nation’s infrastructure, particularly in rural areas. Currently, 121 ECs are actively working with the National Electrification Administration (NEA) to advance rural electrification, with a target to support the nation’s total electrification goal by 2028.
To encourage performance, institutions like NEA and the Philippine Rural Electric Cooperatives Association (PHILRECA) conduct annual award programs, namely the Lumens Awards and Awards from the Wires, respectively, to recognize high-performing ECs.
In NEA’s latest 2025 performance assessment, 81 ECs retained their “AAA” classification, which is the highest rating, reflecting full compliance across key benchmarks, including financial stability, institutional performance, technical standards, and required reporting obligations.
Meanwhile, PHILRECA recognizes ECs, along with their officers and employees, for outstanding performance in advancing total electrification and promoting sustainable rural development. Recognitions include achieving the lowest on-grid system losses, ensuring prompt payment of amortizations, maintaining high collection efficiency, and demonstrating philanthropic support through assistance to fellow cooperatives.
At first glance, these awards appear to signal reliability. However, when compared with consumer experiences, news reports, and public discourse, a more complex picture emerges.
(Also read: The Hidden Charge on Every Electric Bill Hurting Filipino Families)
Awarded ECs vs Consumer Reality
Below are some recognized ECs, but whose public perception varies significantly.
First Bukidnon Electric Cooperative (FIBECO)
Awards & recognition: FIBECO emerged as one of the most decorated power distributors at the 2025 NEA-EC Convergence. Among its standout citations were recognition as a Most Improved Electric Cooperative, a Sinag Award for free household energizations, and a Prompt Payor Award. The EC also received distinctions for fully liquidated subsidy funds, strong annual meeting participation, and consistent financial discipline.
On-the-ground reality: In 2025, NEA filed criminal complaints against officials of the FIBECO. The case centered on a former general manager accused of qualified theft involving transactions that did not materialize and the alleged diversion of cooperative funds. The complaint cited an unauthorized plan to acquire land worth ₱11.55 million that was never completed, along with the transfer of ₱6 million to a personal account.
Earlier, in the mid-2000s, the EC faced internal disputes involving the then general manager, Engr. Jose S. Dela Cruz. Employees accused him of nepotism, misuse of funds and property, and incompetence. A NEA investigation found merit in the complaints, leading to his dismissal in 2007, which was later affirmed in 2019 and upheld by the Supreme Court.
Separately, FIBECO faced public complaints and consumer petitions over its electricity rates, particularly increases that customers said were insufficiently explained.
Siargao Electric Cooperative, Inc. (SIARELCO)
Awards & recognition: SARELCO is consistently recognized by NEA, PHILRECA, the Association of Mindanao Rural Electric Cooperatives (AMRECO), and other allied organizations for sustained excellence in rural electrification. In recent years, it has continued to receive major honors, including the Golden Dagitab and PHILRECA awards, showcasing sustained operational efficiency, strong governance, and community-focused electrification programs.
On-the-ground reality: In December 2024, Siargao experienced a 14-day island-wide blackout after a submarine cable fault disrupted power supplied through SIARELCO. The prolonged outage affected tourism, local businesses, and households, leading to water shortages, higher fuel costs, and significant revenue losses. Many establishments temporarily shut down as essential goods like ice and drinking water became more expensive. The provincial government of Surigao del Norte placed the island under a state of calamity as the situation escalated, while SIARELCO worked on restoration.
Although the cable was eventually repaired, service instability persisted. By mid-March 2025, SIARELCO’s public updates indicated six unscheduled power interruptions within the month. This prompted frustration among some consumers online, with comments criticizing repeated outages and perceived service shortcomings, reflecting ongoing dissatisfaction despite restoration efforts. Some residents and visitors voiced concerns on social media, citing recurring outages and calling for improved reliability.
Northern Davao Electric Cooperative (NORDECO)
Awards & recognition: Also securing multiple distinctions at the 2025 NEA Lumens Awards is NORDECO, highlighted by the Highest Amortization Payment (Mega Large EC), Single Digit Feeder Loss Award, and the EC with Fully Liquidated Subsidy Fund recognition. These top citations were complemented by further honors under both NEA and PHILRECA for improved system efficiency, active participation in cooperative governance, and sustained compliance with electrification performance standards.
On-the-ground reality: NORDECO has faced sustained criticism from consumers over service reliability, frequent power interruptions, and electricity rates. In 2024, Samal Island officials reported that unreliable supply was linked to estimated local economic losses of ₱120 to ₱150 million, highlighting the impact of recurring outages on businesses and public services.
To address power stability issues, NORDECO earlier proposed a ₱1.1 billion submarine cable project linking Pantukan to Samal Island, but the initiative was not implemented as originally scheduled.
In 2025, legislative and regulatory developments expanded the franchise of Davao Light and Power Company into parts of NORDECO’s service area, a move the cooperative opposed, citing due process concerns, even as the Supreme Court upheld the law’s constitutionality.
Northern Negros Electric Cooperative (NONECO)
Awards & recognition: In 2025, NONECO received dual recognition: the Fully Liquidated Subsidy Fund Award for the prompt and complete settlement of government subsidy requirements, and the Prompt Payor Award for consistently meeting its financial obligations on schedule.
On-the-ground reality: NONECO has faced recurring criticism over power interruptions and delayed response to infrastructure failures across its franchise area in northern Negros Occidental. Residents and local officials have raised concerns over prolonged outages linked to repeated equipment breakdowns, which have affected electricity access in multiple communities.
In 2024, a malfunction at NONECO’s 15 MVA Victorias substation transformer triggered widespread blackouts across several towns, including E.B. Magalona, Manapla, and Victorias City, affecting an estimated 300,000 households. The incident drew public criticism from local leaders, who cited slow restoration efforts and limited communication on repair timelines. The situation also exposed underlying constraints in the EC’s infrastructure, as the failed transformer was a borrowed unit from another utility due to NONECO’s limited capacity to procure replacements. During the disruption, emergency support was provided by neighboring power suppliers to partially stabilize the supply.
By 2025, the consumer group Alliance of Concerned Consumers in Electricity and Social Services (ACCESS) had expressed support for proposed reforms involving partnerships with private utilities, framing them as a potential solution to long-standing issues on ageing infrastructure, operational efficiency, and service reliability in the region.
Ilocos Norte Electric Cooperative (INEC)
Rewards & recognition: INEC earned multiple recognitions at the 2025 NEA Lumens Awards, led by its second consecutive Top Performing Electric Cooperative Award for its strong 2024 performance. It was also cited forBest in Collection Efficiency, High AGMA (Annual General Membership Assembly) Attendance, and the Compact of Cooperation Award.
On-the-ground reality: The EC came under heightened scrutiny following allegations of financial misconduct and internal irregularities. In 2025, NEA filed criminal complaints against several current and former officials after an internal probe pointed to the alleged misuse of cooperative funds. The case, based on Department of Justice filings, involved syndicated estafa linked to about ₱118 million drawn from INEC’s Employees’ Retirement Fund, covering multiple executives and department heads.
Authorities noted that the investigation remains ongoing, with possible additional cases as NEA, the DOJ, and the National Bureau of Investigation (NBI) continue reviewing related anomalies across several ECs, underscoring wider concerns on governance and accountability in the sector.
Operationally, INEC also faced major disruptions during Typhoon Nando in September 2025, when damaged transmission lines and toppled infrastructure caused widespread outages across northern Ilocos Norte, leaving several towns without power as restoration efforts continued amid severe weather conditions.
(Also read: BARMM’s Energy System Under Pressure and Reform)
Awards as Indicators, Not Outcomes
Awards, ratings, and recognition are designed to measure ECs against defined benchmarks in financial, technical, and institutional performance. While these frameworks provide a standardized view of performance, they reflect compliance metrics and operational targets within a given period rather than direct measures of consumer experience.
Comparisons between award outcomes and publicly reported service conditions show that recognition does not always align with operational realities. Several ECs cited for high performance or multiple awards have also faced consumer complaints, infrastructure failures, service interruptions, and, in some cases, administrative or legal scrutiny.
Taken together, EC awards function primarily as institutional performance indicators within a regulated system. However, they do not fully capture service continuity, infrastructure resilience, or customer experience, which are often more relevant in assessing overall utility performance.
Sources:
https://powerphilippines.com/81-electric-cooperatives-earn-aaa-rating-at-2025-nea-lumens-awards/
https://tielcoelecdu.com/2021/09/02/philreca-awards-from-the-wires/
https://www.bworldonline.com/the-nation/2025/05/27/675337/nea-files-case-vs-2-power-co-ops/
https://lawphil.net/judjuris/juri2022/jun2022/gr_254830_2022.html
https://siarelco.com/awards-and-recognitions/
https://www.facebook.com/photo/?fbid=1131344772122141&set=a.604246878165269
https://www.manilatimes.net/2025/02/18/opinion/columns/let-there-be-light/2056932
https://www.sunstar.com.ph/davao/mayor-samal-loses-p120-p150m-yearly-due-to-unresolved-power-woes
https://www.pna.gov.ph/articles/1243573
https://www.sunstar.com.ph/davao/supreme-court-upholds-davao-light-expansion
https://www.philstar.com/nation/2024/10/18/2393365/power-outages-hit-3-negros-areas
https://www.sunstar.com.ph/bacolod/malacon-slams-noneco-inefficiency-to-address-power-outages
