Voices Rising: Consumers Unite Against Failing Electric Cooperatives

November 26, 2025
Balitang Mindanao
Public Policy
0

Recent storms Tino and Uwan again exposed the chronic weaknesses of many electric cooperatives (ECs). At a Department of Energy (DOE) briefing on power restoration earlier this month, the contrast was stark: Meralco reported near-total restoration by November 11, while Luzon’s ECs had brought back power to only about 64% of affected municipalities.

In Cebu, where Tino’s flooding left neighborhoods in darkness for days and destroyed homes, the Visayan Electric Corp. (Veco) moved quickly, restoring service to 95% of customers by November 10. Support from sister utilities, including Davao Light and Power (Davao Light), helped accelerate repairs, from clearing damaged lines to replacing collapsed poles and equipment.

But outside Metro Cebu, recovery dragged. The Cebu Electricity Rights Advocates (CERA) highlighted the uneven rehabilitation in communities served by ECs, leaving thousands without electricity, and in many cases, without water, for far longer than those in the city.

Issues such as slow service, rising electricity rates, financial mismanagement, and inadequate system upgrades have pushed consumers across Luzon, Visayas, and Mindanao to speak out. Many are calling for better performance from their ECs, arguing that unreliable and costly power directly affects quality of life and undermines local economic progress.

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Batelec consumers push for a Meralco joint venture

The Batangas Electric Cooperative (BATELEC) 1 serves Batangas’ western towns, including Agoncillo, Lemery, San Luis, Taal, Balayan, and Nasugbu. BATELEC 2 covers the eastern side, from Lipa and Tanauan to Cuenca, Rosario, San Juan, and Talisay. Meanwhile, Batangas City and nearby areas are supplied by Meralco.

Batangas has emerged as Calabarzon’s fastest-growing province, rebounding with a 12.5% expansion after the pandemic. Yet this momentum is being undercut by Batelec 1 and 2, where aging infrastructure and system gaps have resulted in frequent daily outages that continue to frustrate residents and businesses.

Additionally, a survey showed that 54% of Batelec 2 customers and 46% of those under Batelec 1 express a willingness to switch providers due to persistent outages and weak customer service.

Survey data from more than 1,200 respondents across 34 cities and municipalities points to a pattern of routine disruptions. Most reported one to two outages a month, while some experienced as many as ten. These power cuts often lasted one to two hours, and in some cases stretched to three.

Overall satisfaction also lagged behind the provincial benchmark of 4.09. Batelec 1 earned a score of 3.96, and Batelec 1 trailed slightly at 3.90, underscoring the public’s growing dissatisfaction with their performance.

As concerns grew, the Batangas League of Municipalities endorsed a Meralco-Batelec 1 partnership in October, noting that around 72% of residents support efforts to improve power reliability.

Meanwhile, the Batangas Forum for Good Governance and Development Association Inc. (Batangas Forum), a coalition of business leaders, professionals, and residents, voiced support for a Meralco-Batelec 2’s joint venture. Citing ongoing poor and unreliable service in the EC’s franchise area, the group formalized its backing in a resolution dated October 29, 2025, signed by its chairman, president, vice president, and board members.

Philstar columnist Bienvenido Oplas praised the initiative, noting that ECs are unlikely to act without sustained pressure from their consumers. “Electric cooperatives (ECs) by nature are pampered by politics and politicians; their inefficiencies and wastes are subsidized by taxpayers via subsidies and loans given by the National Electrification Administration (NEA),” he wrote.

Residents back Noneco-Negros Power partnership

The Northern Negros Electric Cooperative (Noneco) supplies electricity to over 200,000 people in northern Negros Occidental, covering Victorias, Cadiz, Sagay, Escalante, San Carlos, and the municipalities of E.B. Magalona, Manapla, Toboso, and Calatrava.

In October, acting Noneco General Manager Engr. Wilbe Bilbao confirmed the cooperative received a letter of intent from the Negros Electric and Power Corporation (Negros Power) for a partnership, adding the proposal is still pending board review and NEA submission.

The Alliance of Concerned Consumers in Electricity and Social Services (Access) expressed strong support for the proposed partnership. In recent months, the group engaged communities across Noneco’s service areas, hearing calls for better service and fairer rates. Access President Wennie Sancho described Negros Power’s proposal as a timely opportunity to modernize Northern Negros’ power system, upgrade Noneco’s aging infrastructure, and improve efficiency, stability, and reliability for residents.

In October 2024, northern Negros Occidental experienced a massive blackout after a transformer at Noneco’s Bacayan substation in Victorias City failed, cutting power to as many as 300,000 households. The outage disrupted businesses, schools, and communications, drawing sharp criticism from E.B. Magalona Mayor Marvin Malacon for Noneco’s slow response and lack of clear restoration updates. The failed transformer had been a borrowed unit from another EC, in use for nearly a year due to Noneco’s limited funds.

The blackout underscored persistent funding gaps: although Noneco received a ₱225.81 million NEA loan in early 2023 for infrastructure upgrades and equipment replacement, it continued to operate with borrowed transformers and struggled to procure critical assets.

Sancho called Negros Power’s proposal a long-awaited opportunity to modernize the region’s power infrastructure and address years of inefficiency. “Noneco’s facilities have aged through the years, and modernization is necessary,” he stated. “This partnership can provide the needed capital, technology, and efficiency to meet the growing demands of consumers.”

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Consumers demand action against Nordeco

In Davao, House Bill No. 11072 became law on April 6, 2025, after President Ferdinand R. Marcos Jr. allowed it to take effect without his signature. The law expands Davao Light and Power Company’s franchise to cover areas previously served by the Northern Davao Electric Cooperative (Nordeco).

The move received strong backing from the Davao Consumer Movement (DCM) and multiple business groups, who criticized Nordeco as inefficient, corrupt, and costly. Residents and business owners have long complained about slow service, strict payment policies, and recurring blackouts, which have caused economic losses of between ₱120 million and ₱150 million annually on Samal Island, including ₱50 million in tourism revenue.

Critics also noted Nordeco’s higher rates, ₱12.56 per kilowatt-hour (kWh) in December 2024 compared to Davao Light’s ₱9.11, and warned that outdated distribution systems disproportionately burden poorer communities, deepening regional disparities.

In September, the Independent Electricity Market Operator of the Philippines (IEMOP) suspended Nordeco from the Wholesale Electricity Spot Market (WESM), following reports of an unpaid power debt of ₱318.4 million.

The suspension coincided with growing opposition to Nordeco’s franchise renewal. The Tagum City Chamber of Commerce and Industry joined calls to block the cooperative, citing years of unreliable service and high electricity rates that have hindered local businesses and economic growth.

Meanwhile, Davao Light is preparing to expand into Nordeco’s former areas, installing 45 new poles, breaking ground on a digital substation and warehouse in Tagum, and allocating ₱1 billion for potential asset acquisition, pending the Supreme Court’s approval.

Transitioning away from ECs

The growing calls for ECs to yield to or partner with private distribution utilities (DUs) reflect widespread consumer frustration.

According to Oplas, DUs outperform ECs in key areas. Unlike ECs, DUs are regulated by the Securities and Exchange Commission (SEC), which does not rely on taxpayer funds, while ECs depend on NEA support. As corporations subject to potential bankruptcy, DUs maintain strict financial and technical discipline, whereas ECs are often insulated from failure through NEA backing and political influence, creating a persistent “moral hazard.”

He also supports the Meralco-BATELEC 2 joint venture as a short-term fix to recurring power issues in the province. While modernization may require“substantial capital expenditures” and modest rate increases, the move is expected to stabilize supply, reduce outages, and boost “business expansion and job creation-retention in the province.”

Regarding underperforming ECs that hinder development and diminish quality of life, Oplas wrote, “Over the long term, I believe that all ECs should become private DUs. Real public service to electricity consumers is the abolition of threats of blackout, the assurance of power supply and distribution stability, reliability, and security. Cheap but frequent blackout is anti-consumer.”

Sources:

https://www.philstar.com/business/2025/11/13/2486758/storms-dus-and-ecs

https://www.sunstar.com.ph/cebu/group-warns-of-dire-water-shortage-in-cebu-province-due-to-lagging-power-restoration

https://doe.gov.ph/ducsp/profile/batelec-i

https://batelec2.ph

https://www.philstar.com/opinion/2025/04/05/2433566/inadequate

https://tribune.net.ph/2025/04/25/batangas-residents-lament-electric-coops-poor-services