PARE Urges NEA to Overhaul Electric Cooperative Ratings After Consumer Complaints
PARE Urges NEA to Overhaul Electric Cooperative Ratings

Consumer advocacy group Partners for Affordable and Reliable Energy (PARE) has called on the National Electrification Administration (NEA) to review its electric cooperative performance evaluation system, asserting that the ratings often fail to match the actual service experienced by consumers. The appeal follows NEA's release of its 2025 Overall Performance Assessment, which classified 91 electric cooperatives as AAA and recognized several others for improved ratings.

Disconnect Between Ratings and Reality

Despite the high marks, many consumers continue to complain about prolonged brownouts, unreliable service, high system losses, slow power restoration during calamities, and rising electricity costs, PARE said. "Consumers are not interested in whether their cooperative is AAA on paper. They want to know why they still face brownouts, high system losses, unreliable service, and rising costs," said Nic Satur Jr., chief advocate officer of PARE. "The ultimate measure of performance should be the experience of consumers, not a rating in a report," he added.

Examples of Rated Cooperatives

PARE noted that some cooperatives received improved ratings in the latest assessment. The Palawan Electric Cooperative (Paleco) moved from AA to AAA, while the Misamis Occidental I Electric Cooperative (MOELCI I) improved from A to AA. The Batangas II Electric Cooperative (Batelec II) and the First Catanduanes Electric Cooperative (Ficelco) retained their AAA ratings. However, the group said consumers in some of these franchise areas continue to report concerns over service reliability, affordability, and overall performance.

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Critique of Evaluation Framework

According to PARE, NEA's evaluation system focuses on financial, operational, technical, and institutional compliance. While these indicators remain important, the group said consumers question whether the framework adequately reflects the realities faced by households, businesses, and farmers that rely on electricity daily. PARE said the gap between ratings and consumer experience risks eroding public trust in the evaluation system.

Consumer Frustration

"In some communities, consumers even joke that AAA no longer means excellent performance," Satur said. He cited comments from Paleco consumers, including resident Tony Cabrestante, who jokingly referred to the cooperative's AAA rating as "Araw Araw Ara Kuryente" because of recurring power interruptions. "The remark may be humorous, but it reflects deeper frustration among consumers," Satur said.

Recommendations for Reform

The group urged NEA to incorporate direct consumer feedback into future evaluations. It recommended including customer satisfaction surveys, complaint resolution rates, power restoration performance during calamities, compliance with the Anti-Red Tape Authority's Automatic Generation Rate Adjustment mechanisms, transparency measures, and other indicators that capture consumer experience. PARE also said NEA's role extends beyond evaluating electric cooperatives. As the agency responsible for supporting the sector, it must ensure that technical assistance, financial support, and regulatory interventions translate into better service and improved consumer welfare.

Bottom Line for Consumers

"The question consumers ask is simple: If a cooperative receives a high rating, why are they still experiencing prolonged brownouts, unreliable service, and expensive rates?" Satur said. "Until that is answered, the evaluation system will remain in doubt." PARE said electric cooperative performance should be measured not only through compliance reports but also through the affordability, reliability, and responsiveness of the services delivered to consumers. "Consumers deserve a rating system that reflects reality, not just paperwork," the group said.

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