The Energy Regulatory Commission (ERC) has revoked the Provisional Authorities to Operate (PAOs) of S.I. Power Corporation (SIPCOR) in Siquijor, effectively shutting down its generation facilities after months of power outages that crippled the island’s economy and services.

ERC cited multiple violations by SIPCOR. These included operating gensets without a Certificate of Compliance (COC), poor maintenance and delayed parts replacement leading to prolonged outages, failure to comply with reportorial requirements, and breaches of Power Supply Agreements (PSAs) with the Siquijor Island Electric Cooperative (PROSIELCO). ERC Chairperson and CEO Atty. Francis Saturnino Juan personally served the order on August 29, 2025, alongside Department of Energy (DOE) Undersecretary Mario Marasigan and National Electrification Administration (NEA) Administrator Antonio Mariano Almeda.

Energy Secretary Sharon S. Garin said, “Malinaw po ang utos ng Pangulo. Hindi katanggap-tanggap ang idinudulot na kawalan sa ekonomiya at pinsala sa kabuhayan ng kapabayaang ito.” She noted that despite being given sufficient opportunities to improve operations, SIPCOR continued to fail. A DOE-ordered NEA audit revealed that consumers suffered 568 power interruptions, which is an average of 31 outages per month, forcing residents to endure rotating brownouts of up to 11 hours per day. This led to the province declaring a state of calamity in early June. From June 16 to August 25 alone, SIPCOR’s plants caused daily outages, with some lasting over seven hours, all the while the company also failed to maintain the mandated 10-day fuel inventory.

“These failures have interrupted the delivery of essential public services, impacting hospitals and schools. They have also caused disruptions to businesses, especially the tourism sector, which provides a major source of livelihood to the people of Siquijor,” Garin added.

To resolve the crisis, PROSIELCO signed Emergency Power Supply Agreements (EPSAs) with TotalPower Inc. for 15.3 megawatts of supply. Three new plants in Larena, Lazi, and Candanay were rapidly installed and synchronized to PROSIELCO’s grid with the support of NEA, NPC, as well as volunteer linemen from Cebu electric cooperatives. The facilities can now deliver a combined 15.75 MW, well above Siquijor’s 9.5 MW peak demand.

“This is a warning to all off-grid suppliers of energy in the islands that if indeed you cannot perform, the government can take over in less than 48 hours,” NEA Administrator Almeda said during the DOE’s media briefing. He noted that two of the new plants were completed in less than two days.

DOE assured consumers that power rates in Siquijor will remain the same under the new agreements, with subsidies under the Universal Charge for Missionary Electrification (UCME) continuing to apply.

Garin emphasized, “Hindi kami papayag na maulit pa ito muli. Makakaasa ang bawat Pilipino na gagawin ng inyong pamahalaan ang lahat ng aming makakaya para guminhawa ang inyong buhay sa ating Bagong Pilipinas.”

She added that the DOE, NEA, and ERC will also evaluate other islands with problematic power supply arrangements. These include Camotes, Catanduanes, Masbate, and Palawan.

President Ferdinand Marcos Jr., who earlier inspected SIPCOR’s facilities and ordered agencies to normalize electricity in Siquijor before the end of 2025, saw his directive fulfilled four months ahead of schedule.

Do you think the government should apply the same strict measures in other off-grid areas facing unreliable power supply?

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