IN A previous column, I asked if the government should fund or continue funding electric cooperatives (ECs).
It may seem like a good idea. But a second closer look and recent events suggests otherwise. Why should the government continue funding electric cooperatives when, since their inception in the 1960s as vehicles for rural electrification, many have been plagued with poor service and frequent brownouts, and on top it, there’s that image of corruption proven by recent events.
Just last year, the National Electrification Administration (NEA) issued approximately P1.8 billion in loans to 36 ECs — up from P1 billion in 2023. Of this, nearly P1.2 billion was allocated for capital projects in over 20 provinces. The funding primarily aimed to upgrade outdated infrastructure.
And then this happened:
NEA filed cases against officials from multiple electric cooperatives over alleged mismanagement and financial irregularities. Its legal teams led by Administrator Antonio Mariano Almeda submitted the complaints to the Department of Justice.
The cases involve Ilocos Norte Electric Cooperative Inc. (INEC) and First Bukidnon Electric Cooperative Inc. (FIBECO).
INEC’s former and current officials are accused by NEA of embezzling about P118 million from the cooperative’s Employees Retirement Fund through syndicated estafa.
Investigations into NEECO 2-Area 2 uncovered a “breakdown in internal protocols” that, NEA alleged had allowed some officials to misappropriate approximately P250 million from retirement and internally generated funds.
FIBECO is under investigation for alleged conspiracy to unlawfully purchase land worth P11.55 million, a transaction that never materialized. Its former general manager is also accused of diverting P6 million to a personal account. (Bilyonaryo.com 5/28/2025)
On the local front, a report by the Institute of Contemporary Economics revealed that from 2022 to September 2024, electric cooperatives in Panay and Guimaras used only P2.38 billion of the P10.52 billion allocated for capital expenditures, or only 22.6% of planned investments. Worse, only 3.1% to 3.7% of total spending went to infrastructure development. The result? An underdeveloped and vulnerable power grid that fails to keep up with rising demand.
Moving on, Bacolod City and nearby local government units were not spared that predicament. NEA said it found that the Negros Occidental Electric Cooperative (NOCECO) made improper disbursements exceeding P87 million. This led to the removal of some executives and suspensions for others. The audit covered NOCECO operations from August 1, 2019, to April 30, 2023, and revealed that disbursements were made without NEA’s approval and above allowable thresholds, despite prior audit findings.
Fortunately, Negros Power (MORE Power’s sister company) executed a timely joint venture with NOCECO literally saving the cooperative’s service area from darkness.
Iloilo City was spared, too. Five years ago, MORE Electric and Power Corporation (MORE Power) took over the city’s distribution system. Since then, Iloilo City has become a shining example of what a productive partnership between a local government and a power utility can achieve in terms of economic progress and quality of life for its residents.
It was also a positive development that Congress granted MORE Power the franchise under Republic Act 11918, allowing it to expand operations to 15 municipalities and one component city in Iloilo Province. Unfortunately, the 1st District, currently served by ILECO I, is not part of the coverage.
But there’s a glimmer of light (pun intended); House Resolution No. 1302, filed in 2023, calls for a review — and potential revocation — of the franchises of underperforming ECs, citing their chronic brownouts, dismal service and corruption. It also proposes exploring alternatives, such as creating new cooperatives or adopting other models to improve electricity delivery in underserved areas.
Indeed, Le Affair Electric Cooperatives is becoming interesting, to say the least./PN
