Business owners in major tourism hubs across the Philippines are calling for greater accountability and reforms in electric cooperatives, following reports that unreliable power supply and poor service have led to millions in financial losses and business closures.
The call to action comes after energy consumer advocacy group ILAW revealed findings from focus group discussions (FGDs) conducted with hospitality and food service businesses in Island Garden City of Samal (IGACOS), Siargao Island, Cebu, and Puerto Galera.
According to ILAW National Convenor Beng Garcia, the findings paint a concerning picture of how power instability is disrupting local economies heavily reliant on tourism. “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,” Garcia warned during a press conference in Manila on Wednesday.
The report highlighted three electric cooperatives as particularly problematic: Northern Davao Electric Cooperative (NORDECO), Siargao Electric Cooperative (SIARELCO), and Oriental Mindoro Electric Cooperative (ORMECO). Business owners consistently rated their services as inadequate, citing prolonged blackouts, voltage fluctuations, and poor service response.
In IGACOS, where tourism is a primary economic driver, businesses gave NORDECO a rating of 2.45 out of 10. Participants reported annual tourism losses of PHP 50 million due to power interruptions. “Frequent and prolonged blackouts have disrupted the tourism industry, which is the lifeblood of businesses in the area,” one business owner reported.
Siargao business owners expressed similar frustrations, rating SIARELCO’s performance at 4.6 out of 10. Power outages and voltage fluctuations reportedly cause up to PHP 100,000 in losses per incident. Meanwhile, ORMECO in Puerto Galera received a rating of 4.5, with businesses citing unannounced outages and lack of infrastructure investment as major concerns. One local entrepreneur remarked, “Some businesses are forced to lower prices or offer compensatory services, further cutting into their profits. Some businesses have closed shop due to the unreliable power supply, leaving some residents unemployed.”
In response to these findings, ILAW is urging the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to enforce stricter regulations on electric cooperatives. Specifically, the group advocates for penalties for service failures and mandatory compensation policies for affected businesses.
“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 emphasized.
ILAW Youth Convenor Francine Pradez also highlighted the broader economic risks if these issues go unaddressed. “If power supply remains unreliable, investor confidence will erode, job creation will stall, and economic growth in these regions will be stifled,” she said.
Beyond immediate accountability measures, ILAW is also advocating for long-term solutions such as investment in renewable energy, community microgrids, and energy storage systems to stabilize power supply in tourism areas.
The organization further stressed the importance of a collaborative approach, calling for the Department of Tourism (DOT) to work closely with energy regulators to represent the tourism sector’s interests in energy planning.
“Tourism is not just about beautiful destinations; it’s about the infrastructure that keeps businesses running,” Pradez added. “We need to future-proof these areas and ensure a sustainable and reliable energy supply.”
As the tourism sector continues to recover from the pandemic’s economic impacts, business owners and advocates alike argue that dependable energy infrastructure is essential for sustaining growth and protecting livelihoods in the country’s most visited regions.
How has unreliable power affected your business or community? ILAW encourages business owners, residents, and stakeholders to share their experiences and insights. Your voice is vital in pushing for better energy solutions and holding electric cooperatives accountable. Join the conversation and help advocate for reliable and sustainable power in tourism hubs.
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