PARE seeks clarification from NEA regarding allegations of
regulatory overreach in electric cooperative operations, citing concerns raised
by member-consumer-owners in Catanduanes. The group emphasizes the need for
transparency, accountability, and consumer protection in governance and
procurement decisions.
June 10, 2026 - The Partners for Affordable and Reliable
Energy (PARE) urges the National Electrification Administration (NEA) to
publicly address allegations and concerns raised by member‑consumer‑owners
(MCOs) about what appears to be increasing interference in the internal affairs
and operations of electric cooperatives.
PARE reported that these concerns emerged after interviews
with MCOs and consumer watchdog groups in Catanduanes. Several consumers
questioned NEA's involvement in the Emergency Power Supply Agreement 2 (EPSA2)
procurement process of the First Catanduanes Electric Cooperative (FICELCO).
Based on information gathered by PARE, consumers expressed
concern following reports that a preferred supplier had allegedly been
identified before the completion of the competitive procurement process.
Additional questions were raised regarding site preparation activities
allegedly conducted before negotiations concluded. Concerns also emerged about
the suspension of directors who supported the lowest calculated bidder.
Stakeholders further questioned the extent of NEA's
involvement in decisions typically reserved for cooperative boards and
management. PARE emphasized that these allegations are unverified and that NEA
should be allowed to respond and clarify the issues.
PARE pointed out that these issues extend beyond FICELCO and
raise broader questions about the appropriate boundaries of regulatory
authority within electric cooperatives.
“Consumers recognize and support NEA's mandate to supervise,
assist, and strengthen electric cooperatives.
However, consumers are also asking where regulatory
supervision ends and where interference in the lawful exercise of cooperative
governance begins,” Nic Satur Jr., Chief Advocate Officer of PARE, said.
The group also noted concerns that NEA may have allegedly
sought to review or involve itself in matters related to the Collective
Bargaining Agreement (CBA) between FICELCO and its employees. While PARE cannot
verify these reports, it asserted that consumers deserve clarification on
whether such matters fall within NEA's authority or are management and labor
concerns best addressed through established mechanisms.
PARE further stated that consumers are particularly
concerned when regulatory actions appear to influence procurement decisions,
board decisions, labor relations, or internal governance matters that directly
affect cooperative operations. The group emphasized that transparency is
essential for maintaining public confidence in both regulators and
cooperatives.
Consumers are not requesting that NEA cease regulatory
activities. Instead, they are seeking explanations regarding the legal basis,
policy rationale, and public interest considerations underlying actions that
some stakeholders perceive as overreach. According to Satur, transparency
benefits all parties, including NEA.
PARE also called for greater transparency regarding the
standards and procedures used to evaluate procurement disputes, impose
sanctions, issue preventive suspensions, and intervene in governance matters
involving cooperatives.
According to the group, the primary concern is safeguarding
the interests of member‑consumer‑owners who rely on cooperatives for affordable
and reliable electricity. Actions that create uncertainty regarding governance,
procurement integrity, or institutional independence may result in higher
costs, project delays, reduced accountability, and diminished public trust.
“Perhaps NEA can help consumers understand where the line is
drawn between regulation and intervention. The public deserves clear answers,
especially when actions taken by regulators have significant implications for
cooperatives and the consumers they serve,” Satur said.
PARE concluded that the most effective way to address
growing public concern is through transparency, dialogue, and accountability.
The group urged NEA to publicly explain and clarify the issues raised so that
consumers can better understand the facts, the legal basis for NEA's actions,
and how these actions serve the interests of member‑consumer‑owners.
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