The Board of Directors of the Cooperative Development Authority (CDA) recognizes the power of supervision and regulation of the National Electrification Administration (NEA) over CDA Registered Electric Cooperatives by virtue of Presidential Decree No. 269 as amended by Republic Act No. 10531 (RA 10531) also known as the National Electrification Administration Reform Act of 2013.

"The CDA's recognition to the NEA is anchored both in law and jurisprudence. Section 18¹ of RA 10531 expressly repealed Article 132(3) of Republic Act No. 9520 or the Philippine Cooperative Code of 2008 which states that NEA has no longer regulatory and supervisory powers over CDA registered cooperatives. Such express repeal means that such power of the NEA is reinstated," the agency said in its memorandum dated 22 February 2023.

The CDA also said that it shall continue to support NEA in the exercise of its power over all electric cooperatives. It noted as well that the Supreme Court in the case of Seares v. NEAB² declared that the NEAB is vested with supervisory and disciplinary powers over officers and members of the Board of Directors of electric cooperatives.

"The Supreme Court further quoted therein the case of Zambales II Electric Cooperative, Inc., Board of Directors v. Castillejos Consumers Association, Inc.,³ whereby the Court ordained that the creation of the CDA did not divest NEA of its regulatory jurisdiction over electric cooperatives nor its disciplinary jurisdiction over the members of the board of directors and officers of these electric cooperatives," the CDA Memorandum added. ###