Siquijor power supplier faces potential government takeover
Post-State of the Nation Address (SONA) briefing on Wednesday, July 30
The Department of Energy (DOE) and the National Electrification Administration (NEA) are considering taking over power supply operations on Siquijor Island due to persistent outages.
During the Post-State of the Nation Address (SONA) briefing on Wednesday, July 30, Energy Secretary Sharon Garin and NEA Administrator Antonio Almeda announced a thorough investigation into the power plant operated by the Siquijor Island Power Corp. (SIPCOR).
The agencies will conduct a study to determine if the power plant can still adequately supply the island. “In a matter of two weeks, [NEA] intends to hire engineers from the UP College of Engineering... We will be sending engineers from UP to evaluate the viability of whether or not the plant can still continue to perform the obligations,” Almeda told reporters.
He noted that NEA has a memorandum of agreement (MOA) with the University of the Philippines for technical support.
This DOE directive aims to test and evaluate the power plant. If SIPCOR is found unable to fulfill its obligations, the NEA may impose conditions or, as Almeda noted, “If we are not convinced that they can still continue according to the provisions of the contract, and I believe contractual obligations should always give way to the paramount interest of public welfare. And that’s the time that the government will step in.”
During a panel discussion with Presidential Communications Office (PCO) Undersecretary Claire Castro, Garin indicated that penalties or contract cancellations for the power supplier are possible.
She added that initial findings are already underway with the Energy Regulatory Commission (ERC).
“We also told the DOJ (Department of Justice) if there are violations other than power obligations, because there are violations in contract and the responsibility with the community,” Garin stated.
She also confirmed that a government takeover of SIPCOR’s responsibilities in Siquijor is a possibility, especially if a declared state of calamity in the province is recognized by Congress.
Garin stressed that there should have been sufficient power reserves on the island to prevent fluctuations, a mandate that was not followed.
“We’ve been giving chances over and over again. Even with looking for generator sets (gensets)… We’re helping them with solutions, but we’re back to where we are now,” she lamented.
“The demand in Siquijor is around eight to nine megawatts (MW), so they should deliver 8.8, 8.5 (MW). Before the President came in [to Siquijor], only 5 to 6 MW were delivered,” Garin noted.
Almeda further explained SIPCOR's critical failure: “The biggest mistake of SIPCOR is the N-1. They should have a reserve generator in case of period maintenance of their gensets,” highlighting the need for backup power.
Other areas in crisis
While President Marcos has brought national attention to Siquijor’s power situation, Garin also identified other areas in need of improved electrification efforts. These include the Camotes Islands, Palawan, Catanduanes, Masbate, and Tawi-Tawi.
Despite claims of political motivations, Garin clarified that Siquijor received national attention due to its growing tourist appeal and marked it as the first time a President has visited the island specifically regarding its energy situation.
Almeda expressed hope that the Siquijor situation would not escalate to the level of crisis previously seen in Occidental Mindoro. “Luckily, we were able to address that problem. Occidental Mindoro now has 24 hours of electricity, and we don’t want [brownouts] to happen again,” he concluded.