On August 29, the Department of Energy and the National Electrification Administration (NEA) formally declared that Siquijor Island Power Corporation (SIPCOR) would halt its operations.
SIPCOR is the private, Villar Group-owned company that held a 20-year diesel-generator power supply agreement (PSA) with the Province of Siquijor Electric Cooperative (Prosielco), acting as the island’s sole centralized electricity provider. As an off-grid province, Siquijor was entirely dependent on SIPCOR’s generation capacity—a reliance that left it vulnerable to recurring outages due to insufficient contracted supply and aging infrastructure.
Department of Energy (DOE) Secretary Sharon Garin said the Energy Regulatory Commission (ERC) ordered SIPCOR’s closure over repeated compliance breaches, noting that Siquijor’s worsening power crisis is “severely impacting the lives and livelihood across the island.”
The following violations prompted the cease-and-desist order against SIPCOR’s operations:
- Frequent outages
Garin reported that Siquijor has been hit by hundreds of power cuts, averaging more than 30 each month, with residents enduring daily brownouts of five to 15 hours that disrupted schools, hospitals, and businesses.
Even after President Marcos’s June 11 visit to personally assess the crisis and his directive for swift action, Siquijor’s power woes persisted. From June 15 to August 3, a total of 50 days saw blackouts lasting 10 hours or more, cutting service to about 16,000 Prosielco consumers. Garin added that between July 20 and August 4, SIPCOR’s unstable plants triggered daily outages, with power down for more than seven hours on five separate days.
- Fuel issues
Records from the ERC hearing revealed that SIPCOR repeatedly fell short of its fuel stock obligations, meeting the mandated 10-day reserve on just 21 of 71 monitored days. Despite its contract with Prosielco requiring such a buffer, documents showed the firm was refueling only every one to five days.
- Non-functioning generators
Garin disclosed that by August 4, only half of SIPCOR’s eight generator units were running, leaving Prosielco with just 4.9 megawatts (MW) against a peak demand of 9.2 MW. She added that despite a two-month window to resolve the shortfall, the core issue remained SIPCOR’s limited generating capacity.
- Lack of maintenance
According to columnist Ben Kritz, SIPCOR lacked basic spare parts to keep its generators in working order, resorting to questionable fixes like reusing oil filters. “For the record, reusing an oil filter is a very good way to cause internal damage to an engine, particular a diesel,” he wrote. With no improvement in supplies, the company abandoned preventive upkeep in favor of a risky “fix it when it fails” approach.
- Passing the Costs
SIPCOR went so far as to request advance payments from Prosielco under their PSA, claiming the money was needed to buy spare parts. Prosielco complied, prioritizing the need to keep electricity flowing to its consumers.
- No improvement
Garin stated that authorities provided SIPCOR from June to August to correct its deficiencies, yet the company failed to take action. “Halos dalawang buwan po hinihintay namin na ayusin ng SIPCOR (We waited nearly two months for SIPCOR to make the necessary fixes),” Garin explained. “SIPCOR, up to today, has failed to improve.”
- Missing papers
Kritz also reported that several of SIPCOR’s generator units were running without valid permits, with some provisional authorities and compliance certificates either lapsed or missing entirely. He added that the company neglected mandatory reporting requirements, leaving many submissions late or unfiled.
In conclusion, Garin stressed that SIPCOR had fallen far short of its commitments. “Sa madaling salita, malinaw na hindi po kaya ng SIPCOR na ibigay ang serbisyo na ipinangako nila,” she said. (“In short, it is clear that SIPCOR cannot deliver the service it promised.”)
Background on Siquijor’s power crisis
Known for its beaches, dive spots, and waterfalls, Siquijor had recently been ranked by Agoda as the country’s fastest-emerging travel destination. But the island was thrown into crisis in May when all six diesel generators at SIPCOR’s lone plant went down during overhauls, cutting supply by about 2 MW and forcing rolling blackouts that left some villages with barely two hours of power a day.
By June 3, the provincial board declared a state of calamity, unlocking emergency funds to ease the worsening energy crisis.
Four days after President Marcos’s visit, the NEA reported that power had been restored in Siquijor following emergency repairs and the addition of a generator from Palawan. The move boosted supply to 11 MW—enough to cover the island’s peak demand—though Marcos admitted the fix was only temporary, vowing a long-term solution within six months.
A five-day ERC inspection in May found wide-ranging lapses in Siquijor’s power system. SIPCOR was cited for poor maintenance, insufficient fuel reserves, operating units without valid safety clearances, and using unpermitted rental generators. Prosielco, meanwhile, was faulted for substandard sectionalizing equipment and delays in relocating vital infrastructure.
(Also read: NGCP’s Transmission Fee Hikes: Are They Justified?)
What follows SIPCOR’s shutdown
Following SIPCOR’s shutdown, Prosielco secured an emergency supply agreement with TOTALPower to deliver 15.3 MW from three plants on the island. NEA Administrator Antonio Mariano Almeda said the new supply is more than enough to cover Siquijor’s peak demand of 9.5 MW.
Garin noted that SIPCOR was required to coordinate the shutdown of its plants with the commissioning of TOTALPower’s generating units so these could be integrated smoothly into PROSIELCO’s distribution system.
“Today’s order to shut down the plants puts an end to SIPCOR’s operations and the disruption it has brought to the people of Siquijor,” Garin declared. She added that the government is reviewing possible legal action against SIPCOR, with the ERC set to assess its breaches under the Electric Power Industry Reform Act (EPIRA) and its PSA.
SIPCOR responded to the ERC decision by saying it is reviewing the order and will pursue all legal remedies available. The company assured stakeholders that it is committed to resolving the issue responsibly.
(Also read: Cebu Leaders Sound Alarm: Unified Energy Plan Need Now)
New plants launched
On September 5, President Marcos led the ceremonial switch-on of three new diesel power plants in Larena, Lazi, and Siquijor town, adding a combined 17.8 MW of capacity to the island’s grid. The facilities were fast-tracked after regulators revoked SIPCOR’s authority to operate.
With 12.25 MW of dependable output and an additional 1.7 MW in reserve, the new plants provide more than enough supply to meet Siquijor’s peak demand. Officials said the project, carried out through the NEA, Prosielco, Cebu Electric Cooperative (CEBECO) I and III, and partner groups, will stabilize electricity service, curb brownouts, and support the island’s economic growth.
When pressed on whether Siquijor would still experience brownouts, Garin said the frequency should be greatly reduced, with 24-hour service expected soon unless unforeseen problems occur. She highlighted that the supplier would face penalties if it failed to deliver.
Sources:
https://mb.com.ph/2025/08/29/sipcor-ordered-to-cease-operations-in-siquijor
https://www.manilatimes.net/2025/09/02/opinion/columns/shameful-business-in-siquijor/2176853
https://pco.gov.ph/news_releases/pbbm-switches-on-new-17-8-mw-power-plants-in-siquijor
https://www.rappler.com/business/department-energy-shuts-down-villar-sipcor-poor-service-siquijor
https://icsc.ngo/siquijors-power-crisis-a-call-for-localized-renewable-solutions