Laban Konsyumer flags risks in NEA procurement policy

Consumer advocacy group Laban Konsyumer has raised concerns over a procurement policy of the National Electrification Administration (NEA), warning that it could weaken the autonomy of electric cooperatives (ECs) and affect consumer welfare.

In a statement, the group criticized the agency’s Regional Procurement Hub (RPH), which centralizes procurement decisions at the national level.

Laban Konsyumer said the system may limit the ability of individual ECs to respond to local conditions, arguing that decision-making could shift away from member-consumers.

“Instead of strengthening electric cooperatives, this setup risks taking decision-making power away from the very communities these institutions are meant to serve,” the group said.

The group also questioned NEA’s position that the RPH promotes efficiency and cost savings, citing what it described as a lack of clear explanation and insufficient consultation with stakeholders.

It warned that centralized procurement could lead to delays, reduced operational flexibility, and the acquisition of materials not suited to local requirements — risks that may ultimately be passed on to consumers through higher costs and poorer service.

Laban Konsyumer further expressed concern over what it described as limited transparency and reduced public participation in policies affecting ECs.

“Electric cooperatives are member-owned institutions. Consumers must have a voice in decisions that directly impact their livelihoods,” it said.

The group urged NEA to provide a clearer explanation of the RPH and other policies, and to conduct broader consultations with ECs and their member-consumers.

“Electricity is a basic service. It must not be managed in a way that removes power from the very people who depend on it,” it added.

As of posting time, NEA has yet to issue a response to the concerns raised by the group.