NEA Strengthens the Criteria for Categorization of ECs

In order to ensure the competitive performance and responsiveness of electric cooperatives (ECs) in the challenge-driven power industry, the National Electrification Administration (NEA) issued the Enhanced Criteria for Categorization of ECs.

The EC categorization is a tool devised by NEA to assess the performance of each and every EC based on a set of criteria which consists of: (1) amortization payment to NEA, (2) system loss, (3) collection efficiency, (4) payment to power supplier/s and the National Grid Corporation of the Philippines (NGCP), including EC’s unpaid power accounts with the National Power Corporation (NPC)/Power Sector Assets and Liabilities Management Corporation (PSALM), EVAT (collected but not remitted) and the Wholesale Electricity Spot Market (WESM), (5) Non-power cost, (6) level of energization which now centers on sitios and (7) result of financial operation.

Each criterion has corresponding point score while demerit points are also applied to those with unliquidated cash advances so as to discourage ECs from granting excessive cash advances to officers and employees and to encourage immediate liquidation of the same.

“Our electric cooperatives are facing a great challenge as the advent of open access and retail competition sets in.  NEA would like to ensure that they would be able to strongly compete in this environment by strengthening our own assessment of their operation”, said Administrator Edita S. Bueno.

In 2010 performance, a total of 70 ECs are categorized as A+ (outstanding) and 15 are A (very satisfactory).

The enhanced criteria will be applied in the evaluation of ECs’ performance starting 2011 operation.