NEA orders ailing power cooperatives to step up operations

MANILA, Philippines — State-run National Electrification Administration (NEA) wants ailing power coops  to reassess and step up their operations after four electric cooperatives (ECs) remained laggards in the agency’s annual assessment.

The agency had previously listed seven remaining ‘ailing’ ECs in the past.

But in the 2019 performance assessment of NEA, four power coops namely Albay Electric Cooperative Inc. (ALECO), Basilan Electric Cooperative Inc. (BASELCO), Lanao del Sur Electric Cooperative Inc. (LASURECO), and Tawi-Tawi Electric Cooperative Inc. (TAWELCO), remained as Category D power coops.

The three ECs have already improved, where Abra Electric Cooperative (ABRECO) progressed from Category D to C, while Masbate Electric Cooperative Inc. (MASELCO) and Sulu Electric Cooperative Inc. (SULECO) maintained their Category C status.

“ECs that need further improvements in the overall performance should reassess their financial, institutional, and technical operations; implement more aggressive strategies and activities, and closely monitor their progress to address major issues and concerns,” NEA administrator Edgardo Masongsong said.

In the latest assessment, NEA said  85 out of 121 ECs obtained AAA rating, the highest score given by the agency to ECs that indicates the power distribution utilities’ full compliance on all parameters.

Of the 85, 30 ECs garnered a score of 100 points in all the performance parameters.

All ECs in Regions I (Ilocos Region), VI (Western Visayas), VIII (Eastern Visayas), and Caraga notched the AAA status, maintaining their excellent performance.

Results of the 2019 overall performance assessment also showed that 85 percent or 103 ECs were evaluated by the NEA as either AAA, AA, or A status. At least 11 ECs improved in their scores in all performance levels.

NEA evaluates and determines the overall performance ratings of all ECs annually.

“ECs that need further improvements in the overall performance should reassess their financial, institutional, and technical operations; implement more aggressive strategies and activities, and closely monitor their progress to address major issues and concerns,” NEA administrator Edgardo Masongsong said.

On the size classification of ECs, the number of mega large ECs increased from 66 to 72 while the number of extra large ECs decreased from 32 to 26. The number of ECs classified as large remained at 17. At least two ECs were classified as medium and four ECs as small.

Six ECs expanded their power market coverage resulting in the improvement of their size classification from extra large to mega Large, namely Zambales II Electric Cooperative, OMECO, SORECO I, Iloilo III Electric Cooperative, Eastern Samar Electric Cooperative and Maguindanao Electric Cooperative.

The results of the 2019 EC overall performance assessment and size classification will serve as the basis for the adjustments of salaries, benefits, allowances and incentives of EC officials and employees.