There may be no escaping the inevitable rotating brownouts for 62,000 consumers of the First Catanduanes Electric Cooperative, Inc. (FICELCO) once the Emergency Power Supply Agreement (EPSA) with Sunwest Water & Electric Co. (SUWECO) expires this Friday noon, May 15, 2026.
At exactly 12 noon on that day, six diesel generators covered by the contract, with a combined net dependable capacity of 5 megawatts, will be shut down by the private power supplier.
Instantly, the Catanduanes island grid will lose 20 percent of its total production of electricity and plunge the towns into darkness for several hours at a time.
Officials of the cooperative, however, are said to be seeking the extension of SUWECO’s EPSA until Vivant Corporation, which will provide 8 megawatts of electricity under the second EPSA, has started operation.
The extension of the SUWECO agreement will have to be approved by the Energy Regulatory Commission (ERC).
Even though the FICELCO Board of Directors has already approved, by a tiebreaker, the recommendation of a technical committee to award the second EPSA to Vivant, it would take at least two weeks to transport the modular gensets plus another five days for mobilization and testing for the energy company to commence operations in Catanduanes.
It may be recalled that last month, the National Power Corporation recommended to the cooperative the immediate extension of the SUWECO agreement to ensure continuity of service while awaiting the completion of the Competitive Selection Process for a new power provider for 24 megawatts of electricity over the next decade.
It is claimed that based on initial talks, SUWECO is amenable to the extension of the expiring EPSA but industry observers said that the company should ensure the availability of diesel fuel to run the gensets in view of its financial difficulties.
The EPSA 1 extension would help FICELCO avoid implementing rotational brownouts lasting from 14 to 16 hours daily, affecting nearly 62,000 member-consumer-owners, while awaiting Vivant’s operation.
Following the posting of an invitation for the emergency power deal, only two firms expressed interest in submitting their proposals – Vivant and S.C. Megaworld Construction and Development Corporation (SCMCDC) owned by former Congressman Hector Sanchez.
A check of S.C. Megaworld’s website shows that it is mostly engaged in construction of buildings and related structures, although it claims to have completed several solar rooftop projects for malls in Central Visayas.
In contrast, the Cebu-based Vivant is deemed a key player in the power industry and is actively involved in power generation, distribution and retail electricity supply in the country, with particular focus on SPUG (Small Power Utilities Group) areas like Catanduanes.
Through 11 subsidiaries and associate companies, Vivant operates the 47-mW bunker-fuel power plant in Palawan serving the local cooperative, a 23-mW power plant in Bantayan island, and a 24-mW plant in Busuanga island, among others.
In 2023, it acquired for P395 million the San Ildefonso Alternative Energy Corp. in Bulacan, which runs a 22-mW solar power plant in a 24-hectare site.
The company also holds a 40 percent equity stake in Samal Solar Renewable Energy Corp. and its 53-mW solar power plant that went into commercial operation in August 2025.
According to a source, the Sanchez company’s proposals contained only general descriptions and did not contain specifics of its plan to supply the 6 megawatts needed to replace the contribution of SUWECO’s EPSA 1 gensets.
On the other hand, Vivant reportedly offered to field modular gensets capable of generating 8 megawatts of electricity, enough to address expected deficiencies in the grid this summer.
In evaluating the proposals for EPSA 2, the FICELCO board was deeply divided on the issue, with only three directors – Arsenia Bernacer of Pandan-Caramoran, Marilyn Carilimdiliman of Virac and Emma Bueno of San Miguel – in favor of the Vivant proposal.
Three members – recently elected directors Atty. Raul Angeles of Viga-Panganiban-Bagamanoc and Salvacion Lee of Bato, and Alicia Arcilla of San Andres – voted no, with board president Dir. Romeo Santos of Baras-Gigmoto breaking the tie.
The three dissenting directors reportedly disagreed with the committee’s evaluation of the S.C. Megaworld proposal, which the directors said should have been allowed to clarify its non-compliance with certain criteria.
The Sanchez-owned firm allegedly submitted a lower diesel fuel consumption rate for its gensets than Vivant, with the difference amounting to an impact of P1.60/kilowatt-hour on power rates.
A representative of the Vivant subsidiary that would provide the gensets reportedly refused to match SC Megaworld’s lower fuel consumption rate.
There is no indication if the disagreement regarding this issue would further delay the replacement of the SUWECO EPSA as Dir. Angeles has allegedly threatened to file cases against his fellow board members and officials of the FICELCO management.
A scenario drawn up by technical personnel for the grid after the expiration of EPSA 1 shows that based on projected demand, load shedding will be implemented lasting 14 hours during weekends and 16 hours during weekdays.
A deficit of 3 mW is forecast from 12 noon of May 15 until midnight, with power interruptions scheduled during the period.
On the other hand, there will be load shedding from 10 AM to 12 midnight during weekends and from 8 AM to 12 midnight during weekdays.
The scenario assumes that all SUWECO diesel power plants are operational, meaning the rotational brownouts could be longer if any one of the company’s gensets conk out or needs maintenance or repair.