The Department of Energy (DOE) has moved to reassure Catanduanes of continued electricity supply, as the island’s diesel-dependent power system continues to face fuel logistics pressure and financial constraints that have previously triggered warnings of possible service disruptions.

In a media statement released today, Energy Secretary Sharon S. Garin said the government is coordinating a multi-agency response to sustain power supply on the island, where diesel generation remains the primary source of electricity.

“We are fully aware of the current situation affecting the operations of the Sunwest Water and Electric Company (SUWECO), particularly the pressure brought about by rising fuel costs and operational challenges that have placed strain on diesel-based generation,” Garin said. “These are real and urgent concerns, and we are addressing them with the full coordination of the government.”

The DOE’s latest assurance comes amid ongoing vulnerabilities in Catanduanes’ off-grid power system, where diesel generation remains the primary source of electricity and has been repeatedly flagged as sensitive to fuel supply delays, pricing volatility, and financing constraints.

Earlier reports and government advisories have already highlighted the risk of tight fuel inventory levels and procurement bottlenecks, prompting warnings that insufficient supply buffers could lead to rotating brownouts or system instability if not addressed.

The situation has also been complicated in recent months by financial and operational constraints affecting SUWECO’s fuel procurement capacity, including liquidity pressures that have slowed the pace of deliveries at various points in the supply chain.

In response, the DOE said it is coordinating with the National Power Corporation (NPC), the Philippine National Oil Company – Exploration Corporation (PNOC-EC), and other agencies to directly facilitate fuel delivery to sustain plant operations.

“Diesel generation remains the primary and stabilizing source of electricity supply in Catanduanes at this time,” the DOE said.

According to the agency, SUWECO has already secured an initial fuel supply equivalent to about one week of operations, while additional deliveries are being arranged on a staggered basis to ensure continuity of service.

To reinforce operations, subsidy support under the Universal Charge for Missionary Electrification (UCME) is also being deployed. The DOE said NPC funds for SUWECO are now ready for release, while succeeding UCME disbursements are being finalized to support ongoing fuel procurement.

“This is a critical intervention that can help ease immediate financial pressure on operations and support the company’s efforts to secure the fuel supply needed to maintain continuous electricity service in the province,” Garin said.

The agency also cited external risks, including global oil price volatility linked to geopolitical tensions in the Middle East, which continue to affect diesel-dependent systems.

“Let me be clear: the national government is taking all necessary steps to prevent any interruption in the power supply arising from the volatility of oil prices in the international market brought about by the situation in the Middle East.”

Beyond immediate stabilization efforts, the DOE said it is pursuing longer-term interventions to reduce vulnerability in missionary electrification areas, including improved supply contracting, rehabilitation of existing facilities, and completion of committed generation and transmission projects.

The DOE said it is working closely with the National Electrification Administration, NPC, Energy Regulatory Commission, and PNOC-EC to stabilize supply conditions in the province.

How should the Philippines balance short-term diesel-dependent island power stability with longer-term structural solutions for missionary electrification systems like Catanduanes?

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