Politico-economic determinants of the performance of electric cooperatives in the Philippines

In rural areas in the Philippines, ensuring access to affordable, reliable, and sustainable electricity falls mainly to electric cooperatives (ECs). While this electrification model proved successful in the United States, developing countries with weak political competition and institutions may allow rent-seeking behavior in the sector. This paper examines the politico-economic determinants of EC performance in the Philippines and finds that lower political competition within an EC franchise area is associated with poor collection efficiency and larger employee size. The study points to the need for greater regulatory scrutiny among EC franchise areas with weak political competition. It also provides insights on facilitating progress towards attaining sustainable development goals and energy transition in developing countries with similar institutional endowments. • Electric cooperatives (ECs) in areas with weak political competition deliver electricity less effectively. • Greater political concentration is associated with lower EC collection efficiency and lower consumer-employee ratio. • Importance of institutional endowments in developing countries for energy access, delivery and transition. • Increased regulatory oversight for ECs in areas of high political concentration.