By Perfecto T. Raymundo, Jr.
MANILA — ILAW energy consumer group on Wednesday (March 19) said that the poor service of electric cooperatives, characterized by frequent blackouts, insufficient power supply, and slow response to complaints, has resulted in large losses of about P50 million and the closure of businesses in the country’s tourism hubs.
Focus group discussions (FGD) conducted by the ILAW with businesses in the hospitality and food sectors at major tourist destinations such as the Island Garden City of Samal (IGACOS), Siargao Island, Cebu, and Puerto Galera, divulged a deep sense of disappointment with the service of electric cooperatives in these areas.
ILAW is a non-profit grassroots organization that aims to inform the wider public of consumers’ rights to fair, affordable, and accessible electricity in the country.
They are at the forefront of highlighting the important electricity issues in the Philippines.
In a press conference in Max’s Restaurant, ILAW national convenor Beng Garcia and youth convenor Francine Pradez presented the results of the FGD.
“It’s time for our electric cooperatives to step up and ensure reliable and efficient power supply, especially in key tourism areas where businesses and livelihoods depend on stable electricity,” Garcia said.
“Continued power instability threatens business sustainability, job security, and the long-term growth of the tourism sector. If this persists, businesses will have no choice but to shut down, leaving many without jobs,” Pradez added.
Businesses criticized the poor service of the Northern Davao Electric Cooperative (NORDECO) in IGACOS, the Siargao Electric Cooperative (SIARELCO) in Siargao, and the Oriental Mindoro Electric Cooperative (ORMECO) in Puerto Galera, which resulted in losses and the closure of some businesses.
Businesses in IGACOS gave NORDECO the lowest rating of 2.45 due to frequent and prolonged blackouts and slow response to complaints, which resulted in approximately P50 million in losses in the tourism sector.
They also warned that if the problem persists, investor confidence will decline, job creation will be affected, and the island’s economic growth will slow.
On the other hand, SIARELCO was given a rating of 4.6 due to frequent brownouts and voltage fluctuations, which resulted in equipment damage and losses of up to P100,000 per blackout.
In Puerto Galera, ORMECO was given a 4.5 rating, which was criticized by businesses for frequent power outages, lack of infrastructure investment, and persistent disruptions that force establishments to provide refunds or lower prices, reducing their profits.
“As a desperate move, some businesses are forced to lower prices or offer compensatory services, further cutting into their profits. Some businesses have closed shops due to the unreliable power supply, leaving some residents unemployed,” a Puerto Galera businessman said.
Meanwhile, Cebu businessmen emphasized the need to modernize the energy infrastructure to keep up with the growing demand for electricity due to the province’s strengthening economy.
ILAW has also called on electric cooperatives to improve their service and ensure a reliable power supply, especially in tourism hubs that depend on a stable flow of electricity.
It also urged the Department of Energy (DOE) and Energy Regulatory Commission (ERC) to implement stricter regulations on electric cooperatives in tourism hubs.
The group also suggested imposing penalties for service failures and implementation of mandatory compensation policies to protect affected businesses.
As a solution, ILAW recommended investment in renewable energy for more stable electricity supply and the development of community microgrids and energy storage systems.
The group also emphasized closer coordination between the DOE, ERC, and the Department of Tourism to ensure that the welfare of the tourism sector is monitored in the energy planning process. ###
