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The Philippines is recognized globally for its stunning islands, with Boracay, Palawan, and Siargao earning top spots in Condé Nast Traveler’s 2025 Readers’ Choice Awards. Boracay led in fourth place, Palawan followed in fifth, and Siargao claimed seventh, as the tourism department reaffirmed its commitment to preserving these natural treasures.
In 2024, Condé Nast Traveler highlighted the Philippines with its multiple entries in Asia’s Top 10 islands, featuring Boracay, Palawan, Cebu, and Siargao.
Despite their global acclaim, the Philippines’ top tourist destinations are facing power challenges. Cebu, Central Visayas’ leading tourism hub in 2024 with 67.5% of the region’s arrivals, drives much of the area’s electricity demand. Consuming nearly half of the region’s power, with Metro Cebu alone using more than half of the province’s supply, the province is placing significant strain on the regional grid as energy needs continue to grow.
In December 2024, Siargao faced nearly a week-long blackout after a fault hit its submarine cable, severing its power supply. The outage shuttered 21 tourist establishments, left many households without water, and prompted the Surigao del Norte Provincial Board to declare a state of calamity.
Meanwhile, Palawan’s thriving tourism sector is increasingly at risk from recurring power outages. Lawmakers pledged to oppose the renewal of Palawan Electric Cooperative’s (PALECO) franchise set to expire in 2029, citing ongoing failures to provide a stable power supply. Frequent outages and voltage fluctuations continue to frustrate both urban and rural residents, while unannounced blackouts lasting up to an hour, occurring up to three times daily, add to already lengthy scheduled interruptions.
(Also read: Visayas Faces Higher Costs Amid Power Strain)
Boracay: Paradise under threat
Tourism is a cornerstone of Boracay’s economy. In 2024, Boracay attracted more than two million tourists, firmly establishing itself as a crucial economic lifeline for its province, where other sources of income are scarce.
Boracay’s rise as a tourist haven has not been without setbacks. By 2018, the island was struggling under the weight of overtourism, prompting then-President Rodrigo Duterte to shut it down for six months for a major rehabilitation. During this period, beaches and waterways were restored, unauthorized structures removed, and waste management systems upgraded to ensure sustainable tourism.
The rehabilitation also reinforced environmental protection through stricter enforcement of laws and regulations. A 30-meter easement from the shoreline was mandated, while businesses and households were required to fully comply with the Clean Water Act and the Solid Waste Management Act. Tourist activities were carefully managed, with visitor limits and tighter environmental rules put in place to safeguard the island’s natural resources.
However, energy stability remains a recurring concern on the island.
In September, a 49-hour blackout left Malay, including Boracay, and nearby Buruanga without power. The outage began on September 13 when damaged underground transmission cables near Caticlan Airport cut off Boracay’s main circuits.
Crews from the National Grid Corp. of the Philippines (NGCP) and the Aklan Electric Cooperative (Akelco) rushed to install a temporary 800-meter bypass line and nearly 20 poles along the airport’s beachfront. Though power was partially restored the following day, rising tides later displaced one of the makeshift poles, delaying full restoration until the evening of September 15.
According to Department of Energy (DOE) Secretary Sharon Garin, the key to ending Boracay’s recurring blackouts rests in finishing NGCP’s long-delayed Nabas–Caticlan–Boracay 138-kilovolt (kV) transmission line. Lasting stability also depends on the repair of the island’s damaged underground cables, which are maintained under Akelco’s supervision.
The long-delayed transmission line remains unfinished after four years of setbacks. NGCP said pre-construction began in January 2017 with route selection, but site conditions, right-of-way disputes, and procurement hurdles have forced further delays in the project’s timeline. Originally slated for completion in March 2021, the project has repeatedly missed its targets—first pushed to 2024, then to May 2025.
One would expect the Boracay transmission line to be a top priority, given the island’s global reputation and recurring power disruptions. But despite recurring delays, the NGCP has again sought an extension. Acting on NGCP’s request, the Energy Regulatory Commission (ERC) approved another deadline move—pushing the completion of the ₱4.23-billion transmission project from May 2025 to August 2026.
“For the Nabas-Caticlan-Boracay Transmission Project, the Commission finds that the adjustment of the timeline is justified, as its completion is necessarily subject to unforeseen factors such as site workability, right-of-way acquisition, procurement processes, and other construction challenges,” stated the ERC.
The ERC ordered NGCP to take full control of key transmission assets, including the Avon–Caticlan line, the Caticlan Cable Terminal Station, and the Caticlan–Boracay submarine cable, and ensure their reliable and continuous operation in line with national standards and regulations.
As of July 31, 2025, the latest Transmission Project Status Report showed the project was only 91.20% complete.
(Also read: NGCP’s Transmission Fee Hikes: Are They Justified?)
Slow & inefficient measures
Boracay had already endured a major blackout earlier in the year, when an 18-hour power interruption in May left both residents and tourists in the dark.
Earlier, on January 2, 2024, a massive outage crippled Panay Island, affecting Aklan, Antique, Capiz, Iloilo, and Guimaras. Multiple power plants shut down, leaving the region without electricity for four days. Iloilo City alone suffered an estimated ₱400 million to ₱500 million in daily losses, amounting to roughly ₱1.5 billion over three days.
According to a study, electric cooperatives in Panay and Guimaras used only ₱2.38 billion of the ₱10.52 billion allocated from 2022 to late 2024. Just around 3% went to vital infrastructure upgrades, while most of the funds were spent on maintenance and minor repairs.
For Manila Times columnist Ben Kritz, Boracay’s recurring power woes trace back to Akelco’s long-neglected transmission system, “which has been a thorn in the side of businesses, residents and visitors on Boracay for close to 20 years.” He said the September outage began when underground cables were compromised by water intrusion, damage that the cooperative itself admitted was beyond repair. The defective lines, which carry power from NGCP’s Nabas–Unidos line through a subsea cable, underscored what he called “Akelco’s fault.”
Kritz also cited National Electrification Administration (NEA) data showing Akelco was rated “yellow” at the end of last year, indicating it failed to meet at least one major performance benchmark. The cooperative’s working capital requirement was ₱334.6 million, yet it held only ₱333.1 million, resulting in a monthly shortfall of roughly ₱1.5 million.
He argued that AKELCO should either turn over operations to a more capable utility or face stricter accountability, writing that “It is too costly and damaging to the national brand to let this situation continue for the sake of some misguided notions about the sanctity of electric co-ops and franchises.”
Meanwhile, NGCP’s delay with the Nabas–Caticlan–Boracay transmission line mirrors broader lagging performance on other projects. In 2023, the ERC ordered the NGCP to explain the prolonged delays in 37 transmission projects nationwide.
The regulator noted that while several of NGCP’s capital expenditure projects had been approved to expand and modernize the grid, many failed to meet their timelines. On average, delays stretched to 820 days, with some projects running behind schedule by as much as 2,561 days.
In December 2024, the ERC imposed a ₱15.8-million fine on NGCP for failing to complete transmission projects on time. The penalty followed an investigation showing that 34 out of 37 capital expenditure projects had experienced unjustified delays.
Urgent action needed
The Philippine Chamber of Commerce and Industry (PCCI) is urging authorities to implement a long-term solution to Boracay’s persistent power problems. PCCI Western Visayas Governor Jobert Peñaflorida called the recent outages a “huge disruption for business, especially for micro, small and medium enterprises (MSMEs).” Because Boracay is a significant economic driver, he added, “It is not okay for Boracay to be marketed as a world-class destination, but it has no stable power.”
The Department of Tourism (DOT) echoed the concern, noting that power disruptions “not only impact daily life but also threaten the reputation of Boracay as one of our premier tourist destinations.”
However, the continued delay in completing the transmission link suggests that the government is once again granting concessions to NGCP at the expense of Boracay’s power security.
A clear timeline and accountability framework should be released to ensure that investments translate into reliable power for residents, visitors, and the tourism industry. Without decisive action, recurring blackouts will continue to threaten the Philippines’ global reputation and economic growth in the country’s high‑value tourism areas.
Sources:
https://palawan-news.com/paleco-franchise-faces-opposition-from-rep-alvarez
https://www.panaynews.net/boracay-island-sees-over-800000-tourists-in-early-2024
https://pia.gov.ph/press-release/doe-closely-monitoring-boracay-power-outage-restoration-works-un
https://www.manilatimes.net/2025/09/16/opinion/columns/akelco-strikes-again/2184367
https://manilastandard.net/business/314654264/erc-extends-boracay-transmission-project-to-2026.html
https://www.philstar.com/nation/2025/09/16/2473123/power-back-boracay-after-2-days
https://dailyguardian.com.ph/end-of-suffering-power-back-in-panay-after-4-day-blackout/
https://www.philstar.com/headlines/2024/01/05/2323533/blackout-iloilo-losing-p500-million-daily
https://dailyguardian.com.ph/panay-power-grid-at-risk-due-to-underinvestment-by-electric-coopsys/
https://www.manilatimes.net/2025/09/16/opinion/columns/akelco-strikes-again/2184367
https://businessmirror.com.ph/2023/07/07/erc-show-cause-order-to-ngcp-explain-delays
https://www.pna.gov.ph/articles/1240481