With its management still unable to secure full lifting of the freeze order on its bank accounts, Sunwest Water & Electricity Co. (SUWECO) has been warned by the Department of Energy (DOE) to fulfill its contractual obligation to ensure adequate fuel to keep its power plants operating.
The First Catanduanes Electric Cooperative, Inc. (FICELCO) was reportedly poised to implement five-hour brownouts in case the diesel gensets run out of diesel but a last-minute delivery of diesel last Saturday evening prevented the scenario from happening.
The current fuel inventory is expected to last until Jan. 6 or 7, a source confirmed, with five to 12-hour brownouts forecast if the supply is not replenished.
FICELCO management is hoping that SUWECO will be able to comply with the conditions set by the Court of Appeals for the lifting of the freeze order on its operating accounts.
It may be recalled that last November 2025, the Anti-Money Laundering Council (AMLC) obtained freeze orders 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.
Affected by the freeze are SUWECO and SUWECO Tablas Energy Corp. (STEC), which were prohibited from accessing their operating accounts for being “related or materially linked accounts.”
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.
Shortly before Christmas Day, it was reported that the CA had lifted the freeze order but with certain conditions that SUWECO must comply.
Apparently, the power company has yet to fulfill the court’s conditions, particularly the requirement for SUWECO and STEC to submit a bond or other acceptable securities in the same amount as that contained in the 14 frozen bank accounts before the freeze order is lifted by the court.
It is claimed that its supplier, Unioil, has now required SUWECO to pay for the ordered fuel first prior to delivery after the latter’s bank cancelled the letter of credit that guarantees payment for Unioil.
With SUWECO unable to comply with the conditions of the lifting of the freeze order, it is not possible for the company to make prior payment for its fuel orders.
Concerned by SUWECO’s situation and intent on ensuring there is no disruption in the supply of electricity, FICELCO has offered to pay Unioil directly for the fuel due to SUWECO.
It has likewise explored the option of sourcing the fuel from Powerzone Petroleum Products Corp., using as guarantee the P39 million payment for SUWECO’s November 2025 power billing.
Both options are allegedly dependent on whether SUWECO management would authorize its legal counsei or its operations managers in Catanduanes and Tablas to sign the agreement.
Sources say that along with Zaldy Co, the other top officials of the two companies, including President Ronald S. Ang have been out of the country since the Sunwest group of companies has been linked to the flood control controversy.
Informed sources stated that the DOE has expressed great concern on SUWECO and STEC’s failure to comply with the bond requirement to lift the freeze order, as the supplier may terminate delivery at any time.
This poses serious threats to ensuring the sufficiency and reliability of of power supply in both islanfs tp the disadvantage and prejudice of the electricity end=users, the agency stressed.
It subsequently directed the two power companies to maintain the minimum fuel inventory required pursuant to the power supply agreements it entered into and to sustain daily operations.
They were given until Jan. 2, 2026 to submit a compliance and work plan to ensure compliance with the bond requirement and in addition ensure continued and uninterrupted supply of fuel while the freeze order remains in effect.
DOE Secretary Sharon S. Garin warned that failure to do so shall force the department to review and possibly cancel the Certificates of Endorsement (COEs) issued for the power plants of SUWECO and STEC.
It reminded that the COEs are privileges which can be withdrawn and revoked without waiting gor an actual violation of the power supply contracts as the lack of fuel supply without a permanent solution poses a risk to the security of power supply in both islands.
Meanwhile, FICELCO management is reportedly in close contact with the DOE and the National Electrification Administration (NEA) regarding the power situation.
Still being considered as a last resort is the deployment of rented modular gensets to the province as reportedly recommended by NEA should SUWECO fail to comply with the freeze order and maintain adequate fuel inventory for its gensets.