More than 13,000 homes in northern Iloilo’s island communities will soon gain electricity access.
This follows the groundbreaking of the P388-million Estancia-Manlot-Calagna-an-Sicogon Islands Submarine Cable Interconnection Project in Barangay San Fernando, Carles, on March 7, 2025.
A major electrification initiative
The three-phase submarine cable project is the “single largest rural electrification project” under the Department of Energy’s (DOE) Total Electrification Program. Funded by the National Electrification Administration’s (NEA) Barangay Line Enhancement Program, it is being carried out by the Iloilo Electric Cooperative (ILECO) III.
ILECO provides electricity to various areas in Iloilo. There are three divisions: ILECO I, II, and III, each serving different districts. ILECO III services northern Iloilo, including Carles and nearby island communities.
“We are thankful for the Barangay Line Enhancement Program of the NEA for funding this event,” said ILECO III General Manager Atty. James Balsomo II. “Once matapos ito, magkakaroon na ng ilaw sa mga tahanan ng ating mga member-consumers,” (Once this is finished, our member-consumers will enjoy electricity in their homes).
The project will electrify Manlot, Calagnaan, and Sicogon islands by extending a 13.2-kilovolt (kV) line from Barangay Daculan, Estancia. Three submarine cable segments will provide 24/7 power to nine barangays, starting with a 2,400-meter link to Barangay Manlot in Carles and concluding in 170 days.
The second phase will run 700 meters, linking Manlot to Barangay Talingting on Calagnaan Island. The final stretch will extend 1,400 meters, connecting Punta Batuanan to Calagnaan Island in Barangay San Fernando, Sicogon Island.
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Long-awaited electrification
Residents embraced the project, calling it a long-awaited dream after years of depending on costly generators and limited solar power. Even today, many island villages in northern Iloilo still struggle with unreliable electricity.
Barangay Captain Junjun Bantillo of Bito-on highlighted how the absence of reliable electricity affects daily life. “Our island has never had electricity. We rely on solar panels and generators, but these are expensive. We can’t use televisions or refrigerators because solar energy is limited,” he said.
Iloilo Fifth District Representative Boboy Tupas, a strong advocate of the project, shared, “Matagal natin itong hinintay, at ngayon, sisimulan na natin ang proyektong ito,” (We have waited for this for so long, and now we are finally starting this project).
Northern Iloilo is home to several beautiful yet lesser-known tourist spots, ideal for beach lovers and adventure seekers. The municipality of Carles, in particular, includes the islands of Gigantes and Sicogon, which boast white-sand beaches and panoramic views.
With the electrification program, Northern Iloilo hopes to boost tourism, creating more livelihood opportunities and increasing residents’ income. Reliable power is crucial for sustaining tourism-driven economies, as seen in other destinations where businesses suffer due to power shortages.
A study by the advocacy group ILAW found that frequent blackouts in tourist hubs like Siargao, Puerto Galera, Cebu, and the Island Garden City of Samal cause businesses to lose between P10,000 and P100,000 per day.
According to focus group discussions with micro, small, and medium enterprises (MSMEs), 74.29% of small businesses reported daily losses of P10,000 to ₱30,000, while larger businesses lost up to P100,000. Without a stable power supply, many are forced to cut costs by reducing staff, lowering inventory, or limiting operating hours.
Electrification in Northern Iloilo could help prevent similar challenges, especially as Carles recorded a 74% surge in tourist arrivals in early 2024, with 21,409 visitors at Bancal Port between January and March. The Carles Tourism Office noted that most travelers explored the Gigantes and Sicogon Islands, a sharp increase from 15,877 in the same period in 2023.
Concerns and discussions around ILECOs
ILECOs hit the headlines in 2024 when the Supreme Court ruled that electric cooperatives do not have a constitutional right to exclusive franchises in their coverage areas. The decision dismissed ILECOs’ petition against RA 11918, which expanded MORE Electric and Power Corporation’s franchise into their service areas.
MORE, originally limited to Iloilo City, was granted additional coverage in 15 municipalities and Passi City after Congress determined it could provide lower electricity rates.
The Court upheld this decision, emphasizing that state-granted franchises are privileges, not private property, and must serve the public good. It also cited the Electric Power Industry Reform Act (EPIRA), which encourages competition to prevent monopolies and benefit consumers.
ILECOs were also cited among Panay’s electric cooperatives guilty of underinvestment in power distribution.
A report by the Institute of Contemporary Economics (ICE) revealed that the seven cooperatives serving Panay and Guimaras spent only P2.38 billion—just 22.6% of their P10.52-billion capital expenditure budget from 2022 to September 2024. With only 3.1% to 3.7% of their spending allocated for infrastructure, ICE warned that their investments amount to mere maintenance rather than system upgrades.
The report highlighted how this underinvestment threatens the reliability of the power grid, especially as the sector faces challenges like extreme weather, renewable energy integration, and outdated infrastructure.
Industry experts suggest that electric cooperatives in Panay should explore partnerships with financially and technologically capable providers to modernize the grid. The Supreme Court’s recent ruling against exclusive franchise rights could pave the way for competition, potentially driving much-needed improvements in service quality and infrastructure development.
Sources:
https://www.pna.gov.ph/index.php/articles/1245629
https://sc.judiciary.gov.ph/sc-exclusive-franchises-are-prohibited-by-the-constitution
https://dailyguardian.com.ph/panay-power-grid-at-risk-due-to-underinvestment-by-electric-coopsys/
https://dailyguardian.com.ph/php388-m-electrification-project-to-power-northern-iloilo-islands
https://dailyguardian.com.ph/carles-sees-tourism-surge-in-q1-2024