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In 2024, the economy of Central Visayas continued its strong performance, growing by 7.3%, the fastest among all Philippine regions, with an estimated gross regional domestic product (GRDP) of ₱1.28 trillion. The growth was largely driven by wholesale and retail trade, motor vehicle and motorcycle repairs, manufacturing, and financial and insurance activities.
Meanwhile, Western Visayas recorded a 4.3% growth in 2024, reflecting an estimated GRDP product of ₱641.76 billion. Excluding Negros Occidental and Bacolod City, which are now part of the Negros Island Region (NIR), the region contributed 2.9% to the national GDP, making it the eighth largest economy among the country’s 18 regions.
NIR’s economy expanded by 5.9% in 2024, with its GRDP reaching an estimated ₱636 billion. This marked an increase of about ₱35.35 billion from 2023 due to broad-based growth across all major industries.
Yet even as growth accelerated in the Visayas, power reliability emerged as a critical weakness, exposing how inefficiencies in electric cooperatives (ECs) threaten economic momentum, public safety, and recovery from disasters.
From the Panay blackout of January 2024 to long-standing issues of underinvestment and slow emergency response, Visayas’ experience offers hard lessons on why electricity distribution can no longer lag behind economic ambition.
(Also read: Advocates Urge Power Reforms to Safeguard Cebu’s Water Supply)
Lesson 1: Efficient power distribution matters in preventing blackouts.
In January 2024, Panay Island experienced one of the most disruptive power outages in recent Philippine history, leaving much of Western Visayas in the dark for several days. The massive blackout was triggered when multiple power plants tripped off and isolated Panay from the rest of the Visayas grid. At one point, about 451 megawatts (MW), roughly 68.7 % of the island’s generation capacity, was lost due to unit shutdowns and ongoing maintenance, drastically reducing available power and forcing transmission operators into crisis management mode.
While the Department of Energy (DOE) noted that the outage was fundamentally a generation and grid coordination failure, ECs do play a significant role in the reliability of local power delivery, and there are documented cases of power interruptions that reflect distribution‑related issues tied to EC systems.
For example, in 2025, the Iloilo Electric Cooperative (ILECO) I and Guimaras Electric Cooperative (GUIMELCO) service areas in Iloilo and Guimaras were repeatedly subject to planned power interruptions tied to line rerouting, substation maintenance, and feeder corrections — actions that require the ECs to organize and manage localized outages within their coverage areas.
Likewise, advisories affecting ILECO 1, ILECO 2, ILECO 3, and the Capiz Electric Cooperative (CAPELCO) cite specific substation or feeder line interventions that lead to multi‑hour outages affecting local communities.
The ECs’ chronic underperformance in delivering reliable electricity is evident in their SAIDI and SAIFI figures, key metrics used worldwide to measure power reliability. SAIDI, or System Average Interruption Duration Index, tracks the total minutes a customer is without electricity over a given period, while SAIFI, the System Average Interruption Frequency Index, counts the average number of outages experienced per customer in a year.
In Cebu, the contrast between private and ECs is striking. For scheduled maintenance in 2023, Visayan Electric Co. (VECO) recorded a SAIDI of 163 minutes, just under three hours, compared with the Cebu Electric Cooperative I’s (CEBECO I) 1,761 minutes, nearly 29 hours. VECO’s SAIFI of 0.5 indicates half an outage per customer on average, whereas CEBECO I reported 4.4, meaning customers experienced more than four interruptions during the period.
In the Visayas, Aklan Electric Cooperative (AKELCO) recorded the highest SAIFI among all cooperatives, with customers experiencing an average of 34 outages in 2022. Meanwhile, Central Negros Electric Cooperative (CENECO) posted the highest SAIDI in the region, with customers experiencing a total of 4,377.77 minutes without power over the reporting period. This translates to more than 73 hours of downtime per customer.
Lesson 2: Overreliance on subsidies can soften ECs’ incentive to innovate or deliver reliable power.
Many ECs remain heavily dependent on loans, subsidies, and collections. Columnist Komfie Manalo observed that, despite relying on government support since their founding, cooperatives continue to serve areas plagued by frequent power outages.
“According to analysts, the subsidies must be halted to cut the undue burden on taxpayers, who are not even customers of these electric cooperatives but, unfortunately, still carry the responsibility to aid in the survival of the ECs,” he stated.
In 2025 alone, the National Electrification Administration (NEA) facilitated around ₱2.8 billion in government-backed loans, providing support to 45 ECs across the country. According to NEA’s Accounts Management and Guarantee Department, the majority of these funds—approximately ₱1.7 billion—were allocated for capital expenditures by 34 cooperatives, aimed at maintaining and upgrading infrastructure.
Meanwhile, about ₱956 million was extended to working capital for 11 ECs located in Albay, Cagayan de Sulu, Camarines Sur, Cotabato, Negros Oriental, Northern Negros, Pampanga, Pangasinan, Sultan Kudarat, and Tarlac.
NEA also released ₱142.4 million in climate-related loans last year to repair infrastructure damaged by Super Typhoon Odette, including the Bohol 1 Electric Cooperative, Inc. (BOHECO 1)’s Janopol Mini-Hydro Plant in Bohol and the Surigao del Norte Electric Cooperative, Inc. (SURNECO)’s distribution lines in Surigao del Norte.
Unlike private distribution utilities, which sustain themselves financially, ECs continue to depend heavily on public funds to stay operational. BusinessWorld columnist Bienvenido S. Oplas, Jr. described NEA as “one of the more wasteful agencies in the government, one that needs an endless subsidy from Philippine taxpayers.”
Oplas added that, unlike private distribution utilities, which are limited to 6% system losses, ECs are allowed up to 12%, a difference that can translate into “hundreds of billions of pesos” in additional costs passed on to consumers annually.
“There is no ‘market failure’ in electricity distribution to justify this continued patronage,” he asserted. “I have argued in the past for the abolition of the NEA someday, and that all ECs should become corporations, monitored by the Securities and Exchange Commission (SEC) and not entitled to any taxpayer subsidy.”
Lesson 3: Chronic underinvestment weakens grid resilience.
A study by the Institute for Contemporary Economics (ICE) underscored substantial shortcomings in the capital spending of the seven ECs operating in the Panay and Guimaras regions. According to the report, these cooperatives have collectively disbursed only ₱2.38 billion of their ₱10.52 billion programmed capital expenditure budget for the period 2022 to 2024. This means that just a fraction of planned funds has actually been spent, raising concerns about chronic underinvestment in vital power infrastructure.
The ICE analysis reveals that the bulk of the limited funding that was released did not go toward the modernization and expansion efforts that are critically needed. Instead, most of the money was diverted to routine maintenance, which helps keep the lights on in the short term but does little to upgrade aging systems or expand capacity. This has impeded efforts to modernize substations, distribution lines, and protective systems, which are essential for improving grid reliability and accommodating future demand growth.
Industry observers and local stakeholders alike have expressed concern that such underinvestment could exacerbate persistent service reliability issues, hinder economic development, and increase vulnerability to outages, especially as energy needs continue to grow across these island provinces.
Lesson 4: Power reliability is inseparable from tourism growth.
The advocacy group ILAW released findings from a focus group discussion (FGD) examining how blackouts affect tourism-related businesses. The study highlighted that persistent power outages inflict substantial revenue losses on both micro, small, and medium enterprises (MSMEs) and larger establishments. According to the report, 74.29% of MSME respondents said they lose ₱10,000 to ₱30,000 daily, while larger businesses face losses of around ₱100,000 per day.
In Cebu alone, the figures are particularly striking: large businesses reported ₱216,000 in daily losses, while MSMEs suffered ₱82,000 each day. The study explained that power interruptions force businesses to halt or delay operations, often compelling cost-cutting measures such as reducing staff, trimming inventory, or limiting operational hours.
“Cebu, particularly large businesses, reported high monthly electricity consumption and costs due to their operational needs. While minimal immediate losses were reported, long-term concerns include the need for modernization of energy infrastructure to keep pace with rising demand,” the findings noted. “Cebu benefits from more effective governance structures where power concerns are addressed through better coordination between utilities, local government, and the private sector.”
ILAW national convener Beng Garcia and youth convener Francine Pradez stressed that outages not only affect revenue but also tarnish the reputation of tourism destinations, resulting in negative reviews and cancellations. Pradez said, “It’s time for our electric cooperatives to step up and ensure reliable and efficient power supply… Continued power instability threatens business sustainability, job security, and the long-term growth of the tourism sector.”
The group urged the DOE and the Energy Regulatory Commission (ERC) to enforce stricter accountability measures for ECs in key tourism areas.
Lesson 5: EC performance directly affects disaster recovery.
In 2024, northern Cebu was struck by a 6.9-magnitude earthquake on September 30, the region’s strongest and the Philippines’ deadliest since 2013, leaving 79 dead, 1,271 injured, and ₱3 billion in damages. Weeks later, Typhoon Tino brought heavy rains and flooding, followed shortly by Typhoon Uwan, further straining communities still recovering from the earthquake.
These successive disasters exposed long-standing weaknesses in the province’s power system. The Cebu Electricity Rights Advocates (CERA) urged equity-focused reforms to the province’s power system, highlighting the stark gap between Metro Cebu and other areas. While the privately-owned VECO was praised for swift repairs and clear updates in urban areas, CEBECO-served communities faced slower, uneven restoration, leaving thousands without water for days.
Cera convenor Nathaniel Chua warned that post-disaster recovery remains heavily imbalanced. “Immediate and responsive help should be given to those who actually need it,” he said, stressing that the needs of municipalities outside highly urbanized areas should not be overlooked.
The group also noted that weak links between electricity and water systems fuel recurring outages. When power to pumping stations fails, communities lose access to safe water, creating a cycle of service interruptions that endanger public health and delay recovery. “We live in a modern community where we have access to modern technology and power, but I hope we don’t forget our basic human needs,” Chua added.
To prevent prolonged crises, CERA called on utilities to prioritize resources for provincial areas, safeguard circuits serving essential water facilities, fast-track resilience projects such as underground cabling, and provide clear updates on power restoration affecting water systems.
Lesson 6: ECs can be replaced when they are inefficient.
The experience of ILECO I, II, and III versus MORE Electric and Power Corporation (MORE Power) illustrates how performance and consumer needs can drive changes in electricity distribution in the Philippines.
In 2022, Congress passed Republic Act No. 11918, expanding MORE Power’s franchise beyond Iloilo City into 15 municipalities and Passi City that had previously been under ILECOs’ exclusive coverage. ILECOs challenged the law before the Philippine Supreme Court, arguing that their franchise rights were violated.
However, in July 2024, the Supreme Court ruled that ECs do not have a constitutional right to an exclusive franchise and upheld Congress’s authority to allow competition in the public interest. The Court emphasized that “a franchise … is not the exclusive private property of the franchisee” and that competition could benefit consumers with more reliable service and lower costs.
“Congress enacted RA 11918 to make electricity more affordable for the people of Iloilo province. Congress determined that expanding More’s franchise would promote healthy competition since More was capable of offering lower energy rates,” stated the Supreme Court decision.
Associate Justice Rodil V. Zalameda, who wrote the ruling, stated, “Without competition, Ilecos can easily dictate the price of electricity. Allowing the entry of another player thus benefits consumers, who no longer have to wait until Ilecos’ franchises expire.”
(Also read: DOE Expands Solar Solutions Program with Iloilo, Bacolod Partnerships)
Lesson 7: Private participation can help secure energy reliability and affordability.
In 2025, the consumer advocacy group Alliance of Concerned Consumers in Electricity and Social Services (ACCESS) voiced strong support for the proposed collaboration between the Northern Negros Electric Cooperative (NONECO) and Negros Electric and Power Corporation (Negros Power).
ACCESS president Wennie Sancho described the partnership as a “crucial step” toward modernizing electricity services and enhancing consumer welfare across Northern Negros. Over the past year, ACCESS conducted educational and awareness programs in NONECO’s service areas, gathering feedback from residents frustrated with unreliable service and high rates.
Sancho emphasized that Negros Power’s proposal should be seen as a partnership for progress, offering a long-awaited opportunity to upgrade NONECO’s aging infrastructure and address operational inefficiencies. He added that the collaboration could significantly improve the stability, efficiency, and reliability of power distribution in the region, ultimately benefiting both households and businesses.
While the cooperative’s SAIFI of 2.11 indicates that customers experienced just over two outages on average, the SAIDI of 235.15 minutes — almost four hours of total downtime per customer — highlights that when outages occur, they tend to be lengthy. This combination suggests that while interruptions are not overly frequent, their duration remains a significant challenge for residents and businesses relying on steady power.
Sancho added that the partnership could strengthen financial stability while enabling the adoption of advanced technologies, including smart grids, renewable energy integration, energy storage, and predictive maintenance, helping to optimize power distribution, reduce outages, and improve overall system efficiency.
“By partnering with financially stable and technologically advanced DU like Negros Power, we can unlock opportunities for economic growth, improve energy security, and enhance customer satisfaction,” Sancho explained.
Moreover, Sancho noted that industry experts recommend ECs consider strategic collaborations with financially robust and technologically capable distribution utilities. Such partnerships, he said, could help bridge infrastructure gaps, modernize operations, and significantly boost the reliability and quality of power service for consumers.
Lesson 8: Financial mismanagement erodes consumer confidence.
In April 2024, NEA, in coordination with the Philippine Rural Electric Cooperatives Association, Inc. (Philreca) and the Philippine Cooperative Development Authority, removed the general manager and all board members of NOCECO over alleged financial irregularities. Following recommendations from the NEA Administrative Committee (ADCOM), the NEA Board imposed removal from office, disqualification from future EC positions, and forfeiture of monetary benefits.
NEA Administrator Antonio Mariano Almeda reported that the NOCECO board had granted themselves at least ₱65.5 million in allowances and benefits without proper authorization. This emerged from a comprehensive audit conducted by NEA, covering NOCECO operations between August 2019 and April 2023.
The audit concluded that these disbursements were “improper” because they exceeded the allowable thresholds under NEA rules, were made without NEA’s explicit approval, and ignored prior audit recommendations by failing to submit the necessary board resolutions for evaluation.
Such high-profile cases prompted calls for greater accountability and transparency in the management of ECs and stronger oversight by NEA. Senator Win Gatchalian stressed that “issues of corruption hounding certain ECs cause consumers to lose their confidence in the ECs concerned. Such a situation negatively impacts operations to the detriment of consumer welfare.”
He highlighted recurring complaints that some EC executives appear to enrich themselves at the expense of their cooperative’s financial health and operational efficiency, leading to poor service delivery. Gatchalian further warned,“Kailangang bantayan natin ang pamamahala ng mga electric coop dahil hindi matutugunan nang maayos ang pangangailangan sa kuryente ng ating mga kababayan hangga’t hindi nareresolba ang mga isyu ng korapsyon na kinasasangkutan ng ibang ECs” (“We must monitor the management of electric cooperatives because the electricity needs of our citizens will not be properly met as long as corruption issues involving some ECs remain unresolved”).
He explained that ECs are particularly susceptible to corruption as they are often exempt from standard government audits, leaving gaps in accountability.
Lessons from the Visayas Experience
The Visayas’ economic rise has exposed a critical contradiction: growth is accelerating, but the power backbone remains fragile. The experiences of Panay and other Visayas communities show that EC inefficiencies are no longer a background issue; they directly affect tourism, disaster resilience, investor confidence, and daily life.
For the Visayas to sustain its momentum, ECs must move beyond survival-level operations toward long-term infrastructure investment, professional governance, and tighter system coordination. The lessons have been learned — often the hard way. The question now is whether they will be acted upon.
Sources:
https://www.pna.gov.ph/articles/1248485
https://www.sunstar.com.ph/bacolod/multiple-plant-trippings-isolate-panay-grid
https://dailyguardian.com.ph/panay-power–grid-at-risk-due-to-underinvestment-by-electric-coopsys/
https://tribune.net.ph/2025/03/19/power-crisis-in-major-tourist-spots-hurting-msmes-study
https://en.wikipedia.org/wiki/2025_Cebu_earthquake
https://www.sunstar.com.ph/cebu/signal-no-1-raised-over-cebu-other-parts-of-the-country-due-to-uwan
https://lawphil.net/statutes/repacts/ra2022/ra_11918_2022.html
https://www.sunstar.com.ph/bacolod/access-foresees-one-island-one-power
https://tribune.net.ph/2023/12/23/electricity-subsidies-to-electric-coops-a-never-ending-burden
https://legacy.senate.gov.ph/press_release/2024/0213_gatchalian1.asp
https://www.philstar.com/business/2025/08/14/2465256/stable-electricity-prices-and-growth