The National Electrification Administration (NEA) has approved the deferment until early next year of the special elections for four districts in the service area of the First Catanduanes Electric Cooperative, Inc. which were originally scheduled this month.
Affected by the resetting of the election of directors are Districts I (Baras and Gigmoto), II (Bato), III (San Andres) and VII (Viga, Panganiban and Bagamanoc).
According to the notice published by the cooperative, the district elections in these towns were supposed to be held starting last Sunday, July 5, for District I, followed by District VII on July 12, District II on July 19 and District III on July 26.
In Board Resolution No. 79, series of 2025, passed during the 11th Regular Board Meeting, the FICELCO Board headed by President Rodulfo Vargas requested NEA to reconsider the deferment of the upcoming district elections “due to ongoing critical operational and financial challenges.”
Approved by all directors present during the June 3, 2025 meeting at its Marinawa, Bato headquarters, the resolution stated that the cooperative is facing significant financial constraints due to recent orders issued by the National Labor Relations Commission (NLRC) which have imposed substantial and unforeseen monetary obligations.
“Due to the absence of available funds to meet these obligations, the cooperative had to realign allocations from key projects, causing delays in their implementation,” the management stressed.
The Board had earlier requested the deferment of the scheduled district elections to reduce expenditures and prioritize financial stabilization, however, the request was denied by NEA because the elections were included in the approved 2025 Cash Operating Budget.
In his letter dated June 30, 2025, NEA Administrator Antonio Mariano C. Almeda informed that the NEA approved the elections’ deferment considering the present challenges of the FICELCO in its power supply, which resulted to the electric cooperative entering into an emergency power supply agreement.
In advising the co-op to conduct the election in the four districts in January 2026, he reminded that directors elected in the deferred elections shall immediately assume office upon taking their oath and shall serve only the remaining portion of the current three-year term which is until the regular schedule of the Annual General Membership Assembly (AGMA) usually held every September. This means whoever wins in the January elections will serve for only eight months.
It may be recalled that three months ago, the Department of Labor and Employment (DOLE) garnished three bank accounts of the cooperative to pay the benefits of 57 former contractual employees who were regularized last year.
The garnishment of the accounts in April and May 2025 came despite an appeal from the FICELCO management for DOLE to await the approval by the National Electrification Administration (NEA) of Board Resolution No. 48 approving the realignment of P7.7 million in funding for important but non-urgent projects for the payment of the benefits.
Last April 4, 2024, the FICELCO Board of Directors passed Resolution No. 48 approving the realignment of funds for the benefits of the regularized employees as the amount was not included in the approved 2025 Cash Operating Budget, necessitating immediate fund realignment that required a thorough review of available resources.
As a result, several vital projects had to be unfunded to provide financing for the settlement of the case.
The resolution was forwarded to NEA for its approval but the DOLE garnishment order was issued before the NEA could take action on the FICELCO measure.
Then, before election day on May 12, the co-op’s biggest power supplier, Sunwest Water & Electricity Co. (SUWECO) scaled down the operation of its diesel power plants due to the National Power Corporation’s continued refusal to pay about P500 million in Universal Charge-Missionary Electrification (UC-ME) subsidies.
In November 2024, SUWECO management had already written NPC President Ferdinand Martin Roxas to request for the immediate release of P216 million in unpaid subsidy billings as well as P475 million representing the difference between the SUWECO’s interim rate and the final rate of the 1st Amendment to the Electricity Supply Agreement with FICELCO.
This, in addition to the delay in the conduct of a Competitive Selection Process (CSP) for a new power supplier gave FICELCO has no choice but to procure power through Emergency Power Supply Agreement (EPSA) to avoid rotational load shedding, maintain system reliability and ensure service continuity.
The deal resulted in an increase in power rates ranging from 9 percent to 12 percent beginning the June 2025 billing period.
It will remain effective for one (1) year or until the New Power Provider (NPP), selected through CSP, becomes commercially operational, whichever comes first, it added.