The paper examines the effectiveness of tax subsidy provisions granted to electric cooperatives (ECs) through the National Electrification Administration (NEA). It notes that the provision of subsidy enables NEA to continue granting commodity loans to ECs; undertake various programs involving line upgrading/rehabilitation and installation of additional substations and systems loss reduction; and reduce ECs' cost of production. In addition, it states that the grant subsidy may be justified as it will enable NEA to sustain its program of assistance and support to ECs.
