The Philippine Competition Commission (PCC), in coordination with the National Electrification Administration (NEA), is calling for a careful reassessment of proposed reforms to the ownership structure of electric cooperatives (ECs), as legislative franchises near expiration over the next five years.
Central to the review is a recommendation from the PCC Economics Office to establish clearer mechanisms that boost competition in electricity distribution while encouraging broader sector participation. The study notes that ownership reforms could improve operational efficiency and attract investment, but may also risk market concentration and tighter vertical integration between distribution utilities and power generators.
The PCC emphasized that any changes in ownership must be guided by robust Competitive Selection Processes (CSPs), which serve as safeguards against collusion and anti-competitive coordination among bidders.
The agency also stressed the importance of a large and diverse pool of participants, including both incumbent utilities and new entrants, across service areas.
Meanwhile, the NEA reiterated its role as the financial, technical, and quasi-judicial overseer of ECs. It highlighted ongoing interventions for underperforming cooperatives, including governance reforms, technical support, and direct oversight, and pledged to report any anti-competitive activity to the PCC.
Both agencies acknowledged the uneven conditions among ECs, particularly those serving high-cost or underserved communities. They also cited Presidential Decree No. 269, which requires majority consumer approval for major asset transfers, ensuring that reforms remain consumer-focused.
The joint review frames sector reform as a delicate balance between enhancing competition, protecting consumers, and advancing universal electrification goals.
