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The National Electrification Administration respects the views of Senator Sherwin Gatchalian on the issuance of NEA Memo on Appointment of Electric Coop Managers.  NEA, however, reiterates the rationale on the agency’s issuance of the said memorandum that it is an exercise of NEA’s quasi-legislative function under Sec. 4-A of PD 269 as amended by RA 10531 which provides, as follows:

“Sec-4-A, Supervisory Powers of the NEA Over Electric Cooperatives, – In the exercise of its power of supervision over electric cooperatives, the NEA shall have the following powers:

 "(a) issue orders, rules and regulations, motu proprio or upon petition of third parties, to conduct investigations, referenda and other similar actions on all matters affecting the electric cooperatives; xxx.”

The NEA cites that in the context of state regulation, the “Interference” in ECs’ affairs comes as a matter of course in the exercise of NEA’s mandate of supervision over their operations and management under the provisions of Presidential Decree (PD) 269 as amended by Republic Act (RA) No. 10531. Supervisory actions such as the selection and hiring of EC general managers (GM) as in the case of the Benguet Electric Cooperative (BENECO) GM are therefore lawful and were executed with due diligence. The procedure adheres to NEA Memorandum No. 2017-035 issued on 24 October 2017.

Such policy guidelines were judiciously crafted, reviewed and approved by the NEA Board of Administrators. Furthermore, NEA is mandated to continuously and efficiently implement all approved policies including the said Memorandum.###

The National Electrification Administration (NEA) is saddened by the statement of Mr. Bongbong Marcos on his concept of Electric Cooperatives (ECs) as inefficient parts in the chain of progress during his interview with DZRH on 25 January 2022.

For more than five decades, the ECs play an important role in ushering economic activities particularly in the rural areas through the implementation of the Rural Electrification Program (REP) which his father, the late former President Ferdinand E. Marcos has started and signed into law on 4 August 1969, the Republic Act No. 6038 or “An Act Declaring a National Policy Objective for the Total Electrification of the Philippines on an Area Coverage Basis, Providing for the organization of the National Electrification Administration, the Organization, Promotion and Development of Electric Cooperatives to Attain the Objective, Prescribing Terms and Conditions for their Operation, the Repeal of R.A. NO. 2717, and For Other Purposes”, as amended by Presidential Decree No. 269 enacted on 6 August 1973.