National Electrification Administration

NEA

The Creation of NEA NEA was created on August 4, 1969, through Republic Act 6038 which declared the total electrification of the Philippines as a national policy. That same year, a $3.5 million loan from the USA funded two pilot RE projects. Senator Emmanuel N. Pelaez and Atty. William “Bell” Crisp customized the American rural electrification model to fit the Philippine setting. Their efforts led to Senate Bill No. 1136. At the time, only 5.8% of rural homes had electricity. RA 6038 aimed to change that by empowering cooperatives (ECs) to provide affordable, reliable power. President Marcos emphasized that total electrification was essential for national development, calling it a new dimension of infrastructure. The success of the pilot cooperatives led to a nationwide RE rollout. Origin of Philippine Electrification Electrification in the Philippines began in 1890, with three street lamps in Manila. From then until the late 1960s, power was largely private-controlled and limited to urban centers. In 1936, Commonwealth Act 120 created NPC to harness hydropower. MERALCO and small operators dominated electricity generation. Due to the profit-driven nature of private utilities, rural areas were underserved. The government realized that electrification could speed up agricultural and industrial development in the countryside. This led to the need for a state agency to manage rural electrification—laying the groundwork for NEA’s eventual creation. Beginning of Rural Electrification In 1960, RA 2717 established the Electrification Administration (EA) to fund rural electric systems. Despite its creation, progress was slow. Most rural homes lacked power or had limited electricity at night. The private sector deemed rural expansion unprofitable. In 1964, USAID surveyed the Philippines’ power sector. Their recommendation: adopt the U.S. rural electric cooperative model. By 1966, President Marcos secured USAID assistance, and NRECA developed feasibility studies for pilot ECs. Two ECs were formed—MORESCO in Mindanao (powered by Maria Cristina hydro plants) and VRESCO in Visayas (self-generated). These pioneers became models for the national cooperative movement under NEA. NEA’s Impact Across the Nation 120+ ECs Supported Partnering for nationwide rural electrification. 100% Area Coverage Goal Electrifying all rural communities in the country. Over 50 Years of Service Legacy of power, partnership, and progress.