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The Visayas has increasingly emerged as one of the Philippines’ strongest regional growth drivers, fueled by tourism, trade, infrastructure expansion, and rapid urbanization. Central Visayas recorded a 7.3% economic growth rate in 2024, making it the fastest-growing regional economy in the country for the second consecutive year.
Cebu has likewise become a magnet for investment due to its strategic location, expanding business process outsourcing sector, manufacturing base, and real estate growth. Provincial investment promotions describe Cebu as an emerging Asian investment hub attracting industries ranging from IT-BPM to renewable energy and tourism.
Yet, the power supply has not kept pace. Inefficiencies in electric cooperatives (ECs) have contributed to fragile grids and frequent service interruptions. A report highlights that the Panay and Guimaras power grid remains at risk due to insufficient investment by ECs.
Frequent outages, slow restoration times, and aging infrastructure undermine not only economic potential but also the everyday lives of residents. For many communities, especially those outside major urban hubs, electricity is not a given, but a daily uncertainty.
(Also read: Cebu on the Brink: Energy Shortages Threaten Its Economic Momentum)
Power Instability in Northern Negros
The Northern Negros Electric Cooperative (NONECO), which provides electricity to over 200,000 customers in northern Negros Occidental, has struggled for years with persistent operational weaknesses.
In October 2024, a transformer breakdown at NONECO’s Bacayan substation in Victorias City triggered a widespread blackout across the EC’s service areas. The disruption cut power to multiple cities and towns, affecting as many as 300,000 households. Businesses were forced to shut down, classes were suspended, and communication and internet services were severely interrupted.
E.B. Magalona Mayor Marvin Malacon called out NONECO for delayed action and the absence of clear timelines for full restoration, with some barangays bracing for up to a week without electricity.
This wasn’t the first time the area experienced prolonged disruptions. In August 2023, E.B. Magalona, Manapla, and Victorias were left with intermittent to near-continuous power interruptions for almost five days after a NONECO transformer at the Bacayan substation shut down. Malacon criticized the EC’s slow outage response, noting that it contrasts sharply with its high electricity rates.
In response, the Alliance of Concerned Consumers in Electricity and Social Services (ACCESS) expressed strong support for the proposed partnership between NONECO and Negros Electric and Power Corporation (Negros Power).
Following community consultations across NONECO’s coverage areas, ACCESS reported rising public demand for improved reliability and fairer rates. Group president Wennie Sancho described the proposal as a timely intervention that could help modernize aging infrastructure and strengthen system performance.
“Noneco’s facilities have aged through the years, and modernization is necessary,” Sancho said. “This partnership can provide the needed capital, technology, and efficiency to meet the growing demands of consumers.”
According to Sancho, the arrangement can lower electricity rates, upgrade facilities, accelerate service response, and boost consumer satisfaction. “This is not about privatization or conversion but about bringing in expertise and investment to make electricity service more reliable, efficient, affordable, and inclusive — which is of utmost importance to consumers,” he stated.
(Also read: Negros Consumers Convene As Visayas Grid Reserves Raise Alarm)
Cebu’s Energy Challenges
Cebu remains the economic powerhouse of the Visayas, accounting for roughly 73% of the region’s GDP and over 80% of the Philippines’ inter-island shipping capacity.
In 2025, the Cebu Electric Cooperative II (CEBECO II) came under scrutiny after severe weather events and a 6.9-magnitude earthquake in late September exposed vulnerabilities in Cebu’s power infrastructure. The National Electrification Administration (NEA) reported that shortly after the quake, around 60% of CEBECO II’s franchise area experienced either total or partial power loss.
The earthquake caused widespread damage across its coverage, which spans 11 towns and two cities from Compostela to Daanbantayan. Transmission line disruptions led to a full blackout in affected areas, compounding recovery challenges. CEBECO II reported significant infrastructure damage, requiring safety inspections and clearances from local officials before reconnection work could proceed. Approximately 4,000 households have been assessed as needing full rehabilitation or major repairs due to extensive structural damage.
Moreover, Cebu Electricity Rights Advocates (CERA) convenor Nathaniel Chuanoted that the speed of electricity restoration has varied widely across Cebu, revealing uneven recovery outcomes. He pointed out that Visayan Electric Company (VECO) wa sable to restore power in Metro Cebu relatively quickly and with greater stability, while communities served by CEBECO II and the Mactan Electric Company (MECO) experienced slower and less consistent service recovery.
As a result, delayed restoration efforts by the Metro Cebu Water District (MCWD), compounded by frequent power interruptions, have prolonged water supply disruptions.
Chua added that even weeks after the disruptions, thousands of households were still experiencing dry taps and sanitation concerns caused by unresolved power lines supplying key pumping facilities remaining offline.
“Service outages have led to acute health risks, missed workdays, and lost revenue for workers and low-income families. MSMEs and small enterprises are forced to halt operations or spend beyond their means on backup systems, while farmers suffer declining crop yields due to failing irrigation,” he lamented. “Even middle-class households face mounting expenses from fuel purchases and water procurement to sustain basic living conditions.”
Aklan Growth vs Power Gap
In 2024, Aklan led Western Visayas in tourist arrivals, welcoming over two million visitors and generating an estimated ₱42.929 billion in tourism earnings.
But in September 2025, a 49-hour blackout struck Boracay and nearby towns, underscoring the island’s exposure to critical power disruptions.
The outage was due to damage to the 69-kilovolt (kV) underground sub-transmission cables near Caticlan Airport. The incident left the tourism hub in complete darkness.
Emergency response teams from the National Grid Corporation of the Philippines (NGCP) and the Aklan Electric Cooperative (AKELCO) rushed restoration efforts, installing temporary poles and constructing an 800-meter bypass line along the beachfront with clearance from aviation authorities. Full restoration was only confirmed after 49 hours by the Department of Energy (DOE).
Earlier in May 2025, Boracay and nearby towns also experienced an 18-hour power outage, triggering widespread complaints online as residents and tourists struggled with intense heat conditions.
Such outages have raised concerns over AKELCO’s capacity to ensure stable power distribution. Manila Standard columnist Ray S. Eñano wrote that generating electricity is only part of the equation, with reliable delivery to households and businesses being equally critical.
“The transmission network is there to assure a reliable electricity supply for residents, businesses, and the tourism industry,” he stressed. “Authorities must assure that it will not occur again, especially in famous tourist spots like Boracay Island.
Manila Times columnist Ben Kritz highlighted AKELCO’s persistent infrastructure issues, noting that the “poor condition of the transmission lines” ha slong affected businesses, residents, and tourists in Boracay for nearly two decades.
He explained that the September outage stemmed from water intrusion into underground cables, which AKELCO itself reportedly described as “irreparable.” Kritz concluded, “So, the simple explanation for why this happened is that it is Akelco’s fault.”
Energy Inequality Impact
The human cost of inefficiency is evident across these case studies, where weaknesses in ECs directly reduce quality of life. Power interruptions lead to significant economic losses, particularly for small businesses that lose daily revenue and larger enterprises that face operational risks.
Education is also disrupted as students struggle without reliable lighting and internet access, while health and safety are compromised when hospitals and clinics, especially in rural areas, must operate under unstable power conditions.
Households are further burdened by higher costs for generators, batteries, and fuel as backup solutions. At the same time, persistent outages weaken investor confidence, discouraging potential investments in affected areas.
These combined impacts disproportionately hit poorer communities, deepening inequality and limiting opportunities for social mobility.
For the Visayas to fully realize its promise, it must move beyond intermittent fixes and commit to long-term solutions. Only then can residents, especially those in underserved areas, enjoy the full benefits of economic growth and improved quality of life.
Sources:
https://pia.gov.ph/news/cebu-bohol-log-fastest-growing-regional-economy-in-2024
https://www.cebu.gov.ph/investment-in-cebu-province/
http://dailyguardian.com.ph/panay-power-grid-at-risk-due-to-underinvestment-by-electric-coopsys
https://www.dailyguardian.com.ph/saving-the-losing-electric-cooperatives
https://www.philstar.com/nation/2024/10/18/2393365/power-outages-hit-3-negros-areas
https://www.philstar.com/nation/2025/09/16/2473123/power-back-boracay-after-2-days
https://www.manilatimes.net/2025/09/16/opinion/columns/akelco-strikes-again/2184367