In a landmark decision, the Supreme Court has declared that executives of electric cooperatives do not lose their positions simply by filing certificates of candidacy (COCs). The ruling came from the Third Division of the Supreme Court, which overturned Section 2 of the National Electrification Administration (NEA) Memorandum No. 2012-2016. This section had previously stated that electric cooperative officers would be considered resigned upon filing their COCs.
The court emphasized that despite their public service roles, electric cooperative officers are private individuals. The decision clarified that only certain private sector employees, such as media professionals, are required to resign upon entering political races, as stipulated by their employers.
The case was brought forward by Oscar Borja and Venancio Regulado, former board members of Camarines Sur Electric Cooperative II. Borja aimed to become the mayor of Bombom, Camarines Sur, while Regulado sought a position on the Canaman municipal council. They contested the NEA’s rule in the Regional Trial Court, which ruled in their favor, a decision later upheld by the Court of Appeals.
The Supreme Court’s ruling further explained that the automatic resignation rule under the Omnibus Election Code applies only to those in public appointive positions, including military personnel and employees of government-owned or controlled corporations (GOCCs). The court distinguished electric cooperatives as private entities that provide public services but are not government agencies or GOCCs, being owned and operated by their member-consumers.