An agreement is being crafted to flesh out details of the Department of Energy’s directive for the island’s electric cooperative to purchase fuel for the diesel gensets of Sunwest Water & Electricity Co. (SUWECO) that would keep it operating in spite of its frozen bank accounts.
The drafting of the agreement, a source told the Tribune, is the offshoot of a coordination meeting held last week between officials of the First Catanduanes Electric Cooperative, Inc. (FICELCO), SUWECO, DOE and the National Electrification Administration.
It may be recalled that last Nov. 29, no less than Pres. Ferdinand Marcos Jr. announced that the Anti-Money Laundering Council (AMLC) had obtained freeze orders from the Court of Appeals on P12 billion in assets linked to the flood control corruption scandal, including that of former Ako Bicol Rep. and SUWECO majority owners Elizaldy Co.
Now declared as a fugitive from justice, Co had signed the Power Supply Agreement with FICELCO as SUWECO president and chief executive in 2010, 2011 and 2016.
It is said that last Dec. 9, the legal counsel of SUWECO and SUWECO Tablas Energy Corp. (STEC) sought guidance from DOE Secretary Sharon Garin regarding the freeze order, which froze various accounts of the two companies for being “related or materially linked accounts.”
The CA order legally prohibits SUWECO and STEC from accessing or disbursing any funds from the affected accounts during the order’s effectivity.
This restricted the power companies’ ability to procure fuel and meet certain operational and maintenance requirements relevant to the continuous power generation in Catanduanes and Tablas, Romblon, which could worsen if the freeze order stays for a longer period, the DOE stressed.
In seeking assistance from the energy department, the counsel of both companies assured its readiness to cooperate with DOE, other agencies and the two electric cooperatives and expressed commitment to maintain normal operations.
Acting on the query, Sec. Garin directed SUWECO and STEC to coordinate with FICELCO and Tablas Island Electric Cooperative (TIELCO), respectively, for the procurement of fuel and augmentation to specific operation and maintenance aspects crucial to the operation of the affected power plants.
Under the DOE proposal, the two cooperatives will procure the necessary fuel directly from the supplier or remit payment for the fuel directly to the suppliers, with SUWECO and TIELCO ensuring the continued operations of the power plants based on the fuel funded by the cooperatives.
The interim framework also directs the co-ops to observe proper accounting of the procurements and inventories of fuel, establish appropriate reimbursements to the two ECs from the frozen accounts upon the lifting of the freeze order, or allow the ECs to add it as a component of the pass-on rates to consumers.
FICELCO and TIELCO personnel would also be allowed to provide personnel, equipment or material assistance to crucial operation and maintenance components of the power plants.
The DOE chief also wrote to Bangko Sentral chairperson and AMLC chair Governor Eli Remolona Jr. to explain the situation in the two off-grid areas and its directives to the cooperatives and its power suppliers to address the looming power crisis.
“Without these measures, the fuel supply will be halted and a severe, if not total, power interruption will ensue in the affected franchise areas,” Garin disclosed, adding that the immediate implementation of the directive is crucial and must be undertaken without delay.
In response to the DOE order, FICELCO General Manager Engr. Francis Gianan has already communicated to SUWECO President Atty. Ronald Ang regarding the company’s authorization for the cooperative to procure fuel for its power plants or remit payment for the fuel delivery to its supplier, UniOil.
SUWECO has a total of 22 diesel generating sets as its two Marinawa power plants, Viga diesel power plant and the EPSA power plant, with an average fuel consumption of more than 5,000 liters per genset per day.
It is claimed that as of Dec. 13, 2025, the fuel inventory at the four power plants would last for two Marinawa DPP would last for four (4) days or until Dec. 17, 2025 while that of the EPSA and Viga DPP will be good for six and 15 days, respectively.
In case SUWECO’s main diesel power plants stop operation due to lack of fuel, FICELCO would have to purchase around 600,000 liters good for 15 days and costing about P35 million at current prices.
If the EPSA power plant is utilized 24/7, it would consume another 700,000 liters costing more than P45 million for the same 15-day period.
As of Saturday, SUWECO’s fuel supplier, UniOil, has been delivering 24,000 liters of fuel daily and sometimes twice a week.
The company’s representative in Catanduanes also debunked rumors that the Sunwest group had terminated its 30,000 employees, including those working for SUWECO.
He bared that, as of last week, only 1,000 personnel have been dismissed from their jobs at the construction companies and its affiliates in the mainland and has not affected the operation of its power plants in Catanduanes.