Table of Contents
The Partners for Affordable and Reliable Energy (PARE) has raised concern over what it described as a clear gap between the National Electrification Administration (NEA) ratings for electric cooperatives (ECs) and the realities faced by consumers. It said a Triple A rating should reflect reliable service, accountability, and customer satisfaction, not just compliance on paper.
“If consumers continue to suffer despite the highest ratings, it is time to urgently reexamine not only the performance of electric cooperatives but also the ratings system itself,” stated PARE Chief Executive Officer Nic Satur Jr.
A Triple A (AAA) rating is the highest performance classification issued by NEA under its Overall Performance Assessment system for ECs. It signifies that a cooperative has met NEA standards across key areas, including financial performance such as positive net worth and sound financial position, operational efficiency with acceptable system loss levels and stable operations, institutional compliance with regulatory and reportorial requirements, and service reliability indicators covering technical and system performance standards.
In 2025, 81 ECs received the “AAA” rating at the annual NEA Lumens Awards.
(Also read: Strong Earthquake Tests Resilience Of Mindanao’s Energy Infrastructure)
Bukidnon outrage over FIBECO Blackout
On May 19, thousands of electricity consumers in Bukidnon were left frustrated after a prolonged power interruption lasting nearly 27 hours, affecting households, businesses, and local economic activity.
The First Bukidnon Electric Cooperative, Inc. (FIBECO) drew public criticism after failing to meet its initial 12-hour outage schedule and subsequent restoration advisories. The disruption stemmed from a substation upgrade, including transformer replacement at the Lumbo Substation.
However, technical issues and equipment failures led to repeated delays, including another reported explosion during energization attempts.
Valencia City, which houses over 200,000 residents and serves as Bukidnon’s commercial hub and key growth center, was also hit by the outage, prompting concerns over possible disruptions to the province’s economic activity.
The Department of Energy (DOE) intervened in the power situation after the city council passed Resolution No. 294-2025, citing widespread consumer complaints over frequent and prolonged outages linked to FIBECO. The resolution, addressed through Vice Mayor Greizl Fernandez, highlighted issues over service reliability and its impact on daily activities in the province’s economic center.
“Fibeco is the company that lets everyone down. In Bukidnon, if we have a little rain, there will be a brownout. If we have a little wind, brown out, if we have a sunny day, brown out,” complained a small business owner. “Then they charge us for everything, even a brownout; they charge system loss. Pure mismanagement at the highest levels.”
However, the EC’s issues have not been limited to service reliability. In May 2025, NEA filed criminal complaints against a former FIBECO general manager for alleged fund misuse. The case involves qualified theft, with accusations of diverting cooperative funds for personal gain, including a supposed ₱11.55 million land purchase that never materialized and a ₱6 million transfer to a personal account without proper authority.
Despite these issues, FIBECO was among the top honorees at the 2025 NEA-EC Convergence, earning awards for improvement, free energizations, prompt payments, financial discipline, and subsidy accountability.
PALECO’S Persistent Power Issues
The Palawan Electric Cooperative (PALECO) continues to face criticism over its inability to deliver stable and reliable electricity to consumers across Palawan. Residents report frequent interruptions, including sudden outages lasting up to an hour and recurring several times daily, alongside scheduled blackouts that extend for hours. The situation is especially difficult in high-demand areas such as El Nido, a major tourism hub, where daily rotational load shedding continues despite growing electricity demand.
PARE also challenged PALELCO’s Triple A rating, prompting the group to file a formal complaint with the NEA for review. “We urge NEA to act transparently and ensure that consumer voices directly inform future assessments and reforms,” stated Satur.
In 2025, PALECO was included among the country’s “AAA-rated” ECs. It also reported a Green Classification under NEA’s Key Performance Standards system, which indicates compliance with all major performance parameters, including financial stability, collection efficiency, and operational benchmarks.
But in that same year, PALECO faced growing political scrutiny over its long-standing service issues, with Palawan Second District Representative Jose Alvarez opposing the renewal of its franchise in Congress. Alvarez remarked on reports that the cooperative had begun seeking endorsements from barangays in Puerto Princesa City, Aborlan, and Narra ahead of its franchise expiration in 2029.
He declared, “Hindi na makakalusot ‘yan. Pwede ko namang upuan ‘yung franchise. Hindi na makakalusot ‘yan,” (That will no longer pass. I can just sit on the franchise. It will no longer get through.)
Alvarez also noted that PALECO is currently under the supervision of NEA, which had previously deactivated the EC’s board and installed an interim management team. Meanwhile, Third District Representative Gil Acosta Jr. said he would also oppose renewal unless PALECO proves it can reliably serve all barangays in Puerto Princesa City.
Supreme Court Allowing Transfer of NORDECO Franchise Areas
The Northern Davao Electric Cooperative (NORDECO) also secured multiple distinctions at the 2025 NEA Lumens Awards, including Highest Amortization Payment and citations for improved system efficiency and sustained compliance with electrification performance standards.
However, the Supreme Court’s recent ruling upholding the validity of Republic Act No. 12144, which allows Davao Light and Power Company to operate in areas previously served by NORDECO, proves that the EC has fallen short of its obligations to consumers. The expansion is expected to drive infrastructure improvements, enhance service reliability, and promote more competitive electricity rates in the affected areas.
NORDECO has been under financial and operational pressure, including a September 2025 suspension from the Wholesale Electricity Spot Market over an unpaid ₱318.4 million obligation, one of the largest in the sector. The EC has also been associated with high electricity rates, averaging ₱13.52 per kWh in early 2026, alongside recurring and prolonged outages affecting households and businesses.
In Samal Island, continued dependence on generator sets due to NORDECO’s delayed infrastructure upgrades has also weighed on local commerce. In response, Davao Light recently launched a submarine cable project across the Pakiputan Strait to help stabilize and improve power supply.
In Davao del Norte, frequent NORDECO power interruptions continue to disrupt livelihoods, small businesses, and remote work, with residents describing electricity instability as a daily constraint. Outages and voltage fluctuations have led to lost income, damaged equipment, and spoiled goods, particularly for sari-sari stores, food traders, and remote workers. Many consumers express hope for more stable service and improved economic conditions.
(Also read: Why a Balanced Energy Mix Is Now Critical for the Philippines)
Accountability Beyond Ratings
The widening gap between regulatory ratings and lived consumer experience has intensified calls for reform in the country’s EC system. Recent developments involving franchise disputes, regulatory interventions, and service reliability issues have further fueled debate on whether current evaluation standards remain aligned with consumer welfare and energy security goals.
PARE stressed that a Triple A rating should reflect real performance, adding that continued brownouts, unresolved complaints, and high electricity rates raise questions on whether the rating reflects reality on the ground.
“Ultimately, the true measure of an electric cooperative’s performance should be the quality of service felt by the consumers it serves,” asserted Satur.
Sources:
https://www.facebook.com/photo/?fbid=946824038357792&set=a.161462543560616
https://www.slideshare.net/slideshow/performance-tools-for-electric-cooperatives/27801801
https://powerphilippines.com/81-electric-cooperatives-earn-aaa-rating-at-2025-nea-lumens-awards
https://www.facebook.com/photo/?fbid=943194978720698&set=a.161462543560616
https://newsinfo.inquirer.net/2231696/extended-blackout-sparks-consumer-outrage-in-bukidnon
https://www.pna.gov.ph/articles/1275478
https://bworldonline.com/the-nation/2025/05/27/675337/nea-files-case-vs-2-power-co-ops/
https://paleco.net/paleco/wp-content/uploads/2026/05/PALECOs-44th-AGMA-Souvenir-Program.pdf
https://palawan-news.com/paleco-franchise-faces-opposition-from-rep-alvarez
https://www.sunstar.com.ph/davao/supreme-court-upholds-davao-light-expansion
https://www.sunstar.com.ph/davao/davao-light-expansion-brings-hope-to-davao-de-oro
https://opinion.inquirer.net/190404/the-myth-of-coexistence-why-nordeco-must-finally-honor-the-law
