The First Catanduanes Electric Cooperative, Inc. (FICELCO), with its P18/kilowatt-hour rate the highest in the country, is navigating uncertain waters.
Just last Oct. 5, 2026, the Sangguniang Bayan of Bato passed Municipal Resolution No. 2026-250 requesting the cooperative’s management to furnish the council with a certified copy of the board resolution granting authorization to the general manager to enter into a lease contract with Isla Dagyab Corporation for the construction of an edifice within the FICELCO compound.
According to the proponents, the request for the document is intended to “verify full compliance with municipal zoning ordinances, environmental regulations, and mandatory building permit applications under PD 1096 and RA 7160.”
The resolution did not state if the council initially inquired at the local government’s Municipal Planning and Development Office and the Municipal Engineering Office if the two offices performed its respective mandate of ensuring all development and construction activities in the town complied with existing law, rules and regulations.
But this is a minor matter compared to the cooperative’s present financial situation.
Recently, FICELCO announced its compliance with the recent advisory of the Energy Regulatory Commission (ERC) extending the no-disconnection policy for electricity consumers until December 2026.
The ERC measure is designed to protect households and businesses from service interruptions during ongoing economic challenges.
In a statement, the electric cooperative said that it has fully implemented the policy, ensuring that member-consumer-owners (MCOs) continue to receive uninterrupted electricity service even if they are unable to settle their bills on time.
While the initiative underscores FICELCO’s commitment to the welfare of the member-consumer-owners and regulatory compliance, the cooperative acknowledged that the prolonged suspension of disconnection activities has had a significant impact on its revenue collection.
With many accounts left unpaid, the cooperative said it is experiencing a tighter cash flow, limiting its ability to cover operational expenses and rising generation costs.
Despite the financial constraints, the FICELCO management assured its consumers that it remains steadfast in maintaining reliable service but strongly encouraged them to settle their electricity bills promptly, noting that timely payments are crucial to sustaining operations and ensuring the continued delivery of quality service.
The cooperative’s delicate balancing act – ensuring consumer protection while maintaining its viability – will only prosper as long as its member-consumer-owners continue to support FICELCO through on-time payments.
This development comes just a month after FICELCO implemented the removal of the 12% Value-Added Tax (VAT) on the allowable System Loss Charge effective in the September 2026 billing month.
This implementation is in accordance with the Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) No. 97-2026, which formally removes the VAT on the allowable system loss charge within the cap approved under Energy Regulatory Commission (ERC) Resolution No. 26, Series of 2026.
FICELCO is committed to ensuring full compliance with the directives and regulations issued by our governing and regulatory agencies.
The adjustment, amounting to 13.99 centavos per kilowatt-hour, is reflected in the billing statements beginning September 2026.
As to the relatively high power rates, these will only be resolved once the ERC rules on the joint application filed by FICELCO and Isla Dagyab requesting that the power produced under the second Emergency Power Supply Agreement (EPSA 2) be entitled to government subsidy under the Universal Charge for Missionary Electrification (UCME).
Another issue still awaiting resolution is the Competitive Selection Process for a new power provider, the Terms of Reference (TOR), the review of which remains unfinished at the National Electrification Administration (NEA).
In the interest of their constituents, the province’s top political leaders should renew their efforts to convince both NEA and ERC to address the matters pending before them as it directly affects the delivery of power service to the public. The sooner, the better.