NEA urges power providers to cut rates

The National Electrification Administration (NEA) is pushing electric cooperatives (ECs) and other power providers to further lower their rates to ease the burden on consumers, especially after data showed most ECs already offer cheaper electricity than private utilities like the Manila Electric Co. (Meralco).

"This is something that deserves commendation. The electric cooperatives have proven that they can offer more affordable electricity to Filipino consumers even compared to Meralco,” NEA Administrator Antonio Mariano Almeda said.

A comparative analysis by the Philippine Rural Electric Cooperatives Association (PHILRECA) showed that from January to June this year, 101 out of 121 ECs—or 83 percent—posted lower average residential electricity rates than Meralco’s P12.84 per kilowatt-hour.

In 2024, 90 ECs or 74 percent offered lower rates than Meralco’s average of P12.17 per kWh.

Among selected ECs, Pampanga-based PELCO I had an average rate of P8.09 per kWh in 2025—P4.76 lower than Meralco.

Others like FLECO, BATELEC II, and MORESCO I posted rates between P9 and P11 per kWh, underscoring the significant rate disparity.

In contrast to for-profit private distribution utilities like Meralco, ECs operate under a mandate of total electrification, even in areas where profitability is difficult to achieve.

Many ECs serve geographically isolated, low-density communities with higher maintenance costs and limited infrastructure access.

PHILRECA also pointed out that ECs are typically burdened with building longer distribution lines across mountainous or island terrain, making operations more costly and complex.

Despite this, they remain committed to delivering lower-cost electricity to their member-consumers.