The National Anti-Poverty Commission (NAPC) demanded the supremacy of the general assemblies of electric cooperatives be protected and recognized in the light of the functional link between the National Electrification Administration (NEA) and the Cooperative Development Authority (CDA).
Under Resolution No. 06, series of 2023, the Commission pointed out that in various circumstances, the cooperative principle of democratic member control must be observed as well as the property rights of the member-consumer-owners (MCOs) of electric cooperatives as granted by the Constitution and Republic Act (RA) 9520 or the Philippine Cooperative Code.
The NAPC stated that Rule III, Section 2 (c), of Republic Act (RA) 8425 or the Social Reform and Poverty Alleviation Act, provides a mechanism for the cooperative sectoral council, among other basic sectors, to meaningfully and actively participate in institution building, governance, and development processes among others.
Further, Rule II, Section 1 (d) of Administrative Order No. 21, series of 2011 enumerates the multi-dimensional approach to poverty alleviation that includes the governance dimension, otherwise known as equal representation and participation which involves reforms that will address the issuance of political equity and equal participation in all venues of society, especially on decision-making and management processes that after their rights, interests and welfare, the government shall ensure that sectoral representation is institutionalized at all levels of government with particular emphasis on the decision-making structures of the different local government units.
Earlier, the CDA published a memorandum addressed to all CDA-registered electric cooperatives with the subject CDA recognition to the power of supervision and regulation of the NEA over CDA-registered electric cooperatives on February 22, 2023.
The said memo stated that the CDA’s recognition to the NEA is anchored both in law and jurisprudence. Section 18 of RA 10531 otherwise known as the NEA Reform Act expressly repealed Article 132 (3) of RA 9520 which stated that NEA has no longer regulatory and supervisory powers over CDA-registered electric cooperatives and such expressed repeal means that such power of the NEA is reinstated.
Further, the said recognition of supervisory powers of NEA remains until there is a new legislation that would harmonize or align the seemingly conflicting provisions between RA 9520 and RA 11364 or the CDA Charter of 2019 and RA 10531 in the supervision and regulation of electric cooperatives.
The NAPC claimed that electric cooperatives are proposing a working arrangement with high consideration of its dual nature as an electric distribution utility operating within the framework of a stock-based member-owned cooperative despite having no intention to amend or climate NEA’s supervisory powers mandated by law.
According to the resolution, Section 2, Rule IV of the implementing rules and regulations of RA 11364, CDA as the lead agency of government shall synchronize the efforts of other relevant government institutions of empowering the cooperatives in achieving their growth as instruments of equity, social justice, and economic development. Its mandate covers organizational, administrative, management, and such other institutional aspects of cooperative institutions.
The Commission claimed that RA 10531 requires that the NEA’s supervision of CDA-registered electric cooperatives be limited to their technical performance as public utilities and any other factors that may be relevant thereto.
The NAPC recognized that the shared experiences of the Benguet Electric Cooperative (BENECO), Davao del Norte Electric Cooperative (DANECO), and other members of the Philippine Federation of Electric Cooperatives (PHILFECO) where officials were delegated by NEA despite their being no board resolutions requesting their aide indicate NEA’s inappropriate application of power.
The Commission asserted that NEA’s rights and jurisdiction over CDA-registered electric cooperatives are being sought after by the NAPC cooperative sector council in a more sensible, reasonable and prudent manner.
Copies of the approved resolution will be transmitted to the NEA, CDA and all electric cooperatives in the country for their information, guidance, ready reference and further needed action by the concerned government agencies.
