Pending completion of its Competitive Selection Process (CSP) to select a new power supplier, top officials of the First Catanduanes Electric Cooperative, Inc. (FICELCO) recently met with Energy Regulatory Commission (ERC) Chairperson Atty. Francis Saturnino C. Juan to discuss ways to ensure the availability of reliable and affordable electricity in the coming summer months.
The ERC chief reportedly told FICELCO officials led by General Manager Francis A. Gianan and Board President Dir. Romeo Santos to make sure that the 60,000 member-consumer-owners are not seriously affected by the current lack of power supply as well as the possibility of higher electricity rates due to the spiraling cost of diesel fuel that powers the generators of Sunwest Water & Electricity Co. (SUWECO).
During the March 18, 2026 meeting, the co-op management brought to the ERC’s attention the fact that as of March 9, 2026 the Catanduanes grid had a thin reserve of just 1.345 megawatts, with the peak demand to rise to as much as 19 mW during summer.
Of SUWECO’s two hydroelectric power plants with a combined net capacity of 3.6 mW, the Solong HPP in San Miguel is producing just 0.5 mW due to low water levels while the Hitoma HPP in Caramoran was knocked out of commission by super typhoon Uwan in November last year.
Repair of the damaged headrace, or the tunnel or pipe that brings water from the reservoir to the powerhouse, is still ongoing, according to the company.
On the other hand, five of its 17 diesel generators are also defective and undergoing repair or reconditioning.
SUWECO still has six operational diesel gensets with a total capacity of 4.15 mW that can be run as needed but the power it supplies would cost more as they were contracted under the Emergency Power Supply Agreement (EPSA) and the electricity produced is not covered by government subsidy.
The Balongbong HPP operated by the National Power Corporation (NPC) is operational but cannot deliver power due to low water levels at the reservoir.
This leaves the island’s lone power supplier with a total net dependable capacity of 14.9 mW, just above the 13.555 system demand as of March 6.
The EPSA gensets, with available power of 4.15 mW, will no longer be available by the middle of May 2026 when the agreement expires.
In its worst-case scenario, FICELCO would have to make do with an available supply of just 5.75 megawatts, with a huge shortfall of 14.485 megawatts at the forecast peak demand of 19.66 mW.
Through a letter sent earlier, GM Gianan and Dir. Santos informed the ERC Chairman of the circumstances affecting the current power supply situation in the island province, including the potential rate impacts arising from the Middle East conflict.
They said that the cooperative is evaluating several possible options, foremost of which is an appeal to NPC to supply the deficit power requirements pursuant to Section 70 of the Electric Power Industry Reform Act of 2001 mandating the state-owned power firm to provide power to areas not connected to the main transmission system.
The board has already passed a resolution last March 10, 2026 appealing to NPC to resume operations in Catanduanes and supply power until a new power provider commences operation.
Another is the operation of the ineligible generating units of SUWECO with an estimate dependable capacity of 13.8 mW to cover the remaining deficit once a second EPSA is secured after May 15 and augment the projected peak demand.
A third option is to enter into a new EPSA to cover the remaining deficit while limiting the contracted capacity of SUWECO to 7.975 mW, excluding the ineligible gensets.
FICELCO sought the ERC’s guidance and assistance to ensure the continuous and reliable supply of electricity in Catanduanes during the dry season and in the months ahead, while the CSP for a new power supplier remains ongoing, and without imposing an excessive burden on electricity rates.
In the meeting that was initiated by Catanduanes Congressman Eulogio R. Rodriguez, the ERC chairman reportedly advised FICELCO officials to request the Department of Energy (DOE) through Secretary Sharon Garin to allow the operation of the “ineligible” gensets with government subsidy.
At the same time, the co-op will have to convince NPC to include Catanduanes among the off-grid areas to be allocated with subsidy from the Universal Charge-Missionary Electrification (UCME) that would have to be approved by DOE.
In another development, FICELCO would ask ERC to reconsider the rate charged by NPC for the electricity produced by the Balongbong Hydroeletric Power Plant which was pegged at P5.47 per kilowatt-hour or the same as the rate for diesel power.
If the ERC allows the reduction of the rate to P2.50 per kWh as set for renewable energy, NPC would have to pay back the excess charges to FICELCO, which in turn would have to refund a certain amount to consumers for the excess rates charged for decades.
Meanwhile, the cooperative’s CSP for a new supplier remains stuck at the National Electrification Administration (NEA) where the questioned Terms of Reference (TOR) are still undergoing review.
As for its bid for the renewal of its franchise, House Bill No. 8459 sponsored by Rep. Rodriguez and co-sponsored by Rep. Presley De Jesus of PhilRECA Partylist and Rep. Sergio Dagooc of APEC Partylist has been approved on second reading at the House of Representatives.
The bill would have to wait for May 4, 2026 when Congress resumes its session for its approval on third reading before it would be sent to the Senate.