BUSINESS
Advocates Philippines
Consumer Group Warns NEA Policies May Hurt Electric Co-ops
Photo credit: LKI and NEA / FB
A consumer advocacy group is raising red flags over recent policies of the National Electrification Administration, warning that these could weaken electric cooperatives and sideline the very consumers they are meant to serve.
In a statement, Laban Konsyumer expressed concern over what it sees as a growing trend toward centralized decision-making—pointing in particular to the Regional Procurement Hub (RPH).
Under the RPH system, procurement decisions are handled at the national level instead of by individual electric cooperatives. For the group, that shift could limit the ability of local co-ops to respond to the unique needs of their communities.
“Instead of strengthening electric cooperatives, this setup risks taking decision-making power away from the very communities these institutions are meant to serve,” the group said.
Laban Konsyumer also questioned NEA’s claim that the RPH would lead to better efficiency and lower costs. According to the group, there has been little explanation and not enough consultation with stakeholders, especially those directly affected member-consumers.
The group warned that centralized procurement could bring unintended consequences, such as project delays, less flexibility in operations, and even the risk of using materials that may not suit local conditions. If that happens, they said, consumers could end up paying the price through higher electricity costs and poorer service.
Beyond the procurement issue, the group also flagged what it described as a broader concern—limited transparency and reduced public participation in policy decisions affecting electric cooperatives.
“Electric cooperatives are member-owned institutions. Consumers must have a voice in decisions that directly impact their livelihoods,” the group emphasized.
Laban Konsyumer is now calling on the NEA to clearly explain its policies and open the door for meaningful dialogue with electric cooperatives and their members. For the group, the bottom line is simple: electricity is a basic service, and decisions about it should not be taken away from the people who rely on it every day.
In a statement, Laban Konsyumer expressed concern over what it sees as a growing trend toward centralized decision-making—pointing in particular to the Regional Procurement Hub (RPH).
Under the RPH system, procurement decisions are handled at the national level instead of by individual electric cooperatives. For the group, that shift could limit the ability of local co-ops to respond to the unique needs of their communities.
“Instead of strengthening electric cooperatives, this setup risks taking decision-making power away from the very communities these institutions are meant to serve,” the group said.
Laban Konsyumer also questioned NEA’s claim that the RPH would lead to better efficiency and lower costs. According to the group, there has been little explanation and not enough consultation with stakeholders, especially those directly affected member-consumers.
The group warned that centralized procurement could bring unintended consequences, such as project delays, less flexibility in operations, and even the risk of using materials that may not suit local conditions. If that happens, they said, consumers could end up paying the price through higher electricity costs and poorer service.
Beyond the procurement issue, the group also flagged what it described as a broader concern—limited transparency and reduced public participation in policy decisions affecting electric cooperatives.
“Electric cooperatives are member-owned institutions. Consumers must have a voice in decisions that directly impact their livelihoods,” the group emphasized.
Laban Konsyumer is now calling on the NEA to clearly explain its policies and open the door for meaningful dialogue with electric cooperatives and their members. For the group, the bottom line is simple: electricity is a basic service, and decisions about it should not be taken away from the people who rely on it every day.
Apr 21, 2026
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