PARTNERS for Affordable and Reliable Energy (PARE) is calling on Congress to exercise stricter oversight and deny franchise renewals to electric cooperatives that fail to meet basic technical and regulatory standards.
The recent case of Isabela I Electric Cooperative, Inc. (ISELCO I) illustrates the urgency of this call.
An Energy Regulatory Commission (ERC) report in late 2025 showed ISELCO I was compliant with only 6 of 46 Philippine Distribution Code (PDC) standards. The cooperative exceeded the feeder loss cap at 10.84 percent against the 10.25 percent ceiling, was only “partially compliant” with PDC requirements, and failed to submit its Philippine Grid Code (PGC) compliance report for 2024.
These lapses, alongside gaps in net metering, customer choice, and metering tests, highlight how consumers ultimately bear the costs of inefficiency and poor reliability.
This case is not about singling out ISELCO I, but about exposing systemic flaws in how franchise renewals are reviewed and granted. If this can happen to ISELCO I, then other cooperatives may be facing similar problems. With around 30 electric cooperatives seeking franchise renewals, the current evaluation system must be reviewed and overhauled to ensure accountability.
The evaluation process must go beyond paperwork and technical submissions. It must take into account the sentiments and lived experiences of consumers, who are directly affected by service inefficiencies and reliability issues. Franchise renewals should not be granted unless cooperatives can demonstrate clear compliance, transparency, and a roadmap for improvement.
Hindi dapat aprubahan ng Kongreso ang franchise renewal ng mga electric cooperative na hindi tumutupad sa itinakdang pamantayan. Kailangang baguhin ang sistema ng pagsusuri upang isentro sa kapakanan ng mga konsumer ang bawat desisyon.
Nic Satur Jr
chief advocate officer, PARE
nsaturjr.pare@gmail.com
09271448048
