The national government is preparing to take control of power operations on Siquijor Island as the province grapples with a persistent electricity crisis, officials from the Department of Energy (DOE) and the National Electrification Administration (NEA) confirmed.
During a post-State of the Nation Address (SONA) forum on Wednesday, NEA Administrator Antonio Almeda emphasized the state’s authority to intervene in public utilities during emergencies.
“The state always has the police power to take over a public utility,” Almeda said. “If there would be any contractual obligation, it should give way to the paramount interest of public welfare.”
President Ferdinand Marcos Jr. has ordered the full restoration of electricity services on the island before the end of 2025, as power interruptions have significantly disrupted daily life in the province, which was earlier placed under a state of calamity.
Currently, Siquijor Island Power Corp. (Sipcor) — a generation firm under the Villar group — is the sole power supplier for the Province of Siquijor Electric Cooperative Inc. (Prosielco), the utility responsible for electricity distribution. The DOE has since urged Prosielco to explore additional power providers to boost supply and mitigate outages.
Sipcor is bound by a 20-year power supply agreement with Prosielco. However, the failure to deliver consistent electricity has left many residents and businesses, particularly those without backup generators, with no viable alternatives.
According to Almeda, Sipcor’s failure stems from “poor management,” particularly its lack of contingency plans.
“Sipcor’s major mistake here is what we call the N-1 contingency,” Almeda explained. “It should have had a reserve generator so that when their gensets undergo periodic maintenance, there’s another one that can run. But they didn’t have that.”
Energy Secretary Sharon Garin added that while the island’s electricity demand hovers between 8 to 9 megawatts, Sipcor has been delivering only 5 to 6 megawatts, resulting in chronic power shortages.
“Of course, it will cause blackouts. And now, it’s back to that same level again because something broke down again,” she said.
While the power industry is largely privatized, Garin stressed that the government still has the mandate to intervene when public welfare is at stake.
Under Section 71 of the Electric Power Industry Reform Act (EPIRA) or Republic Act No. 9136, Congress — upon the President’s declaration of an imminent supply shortage — may authorize the establishment of additional generating capacity under approved terms and conditions.
The DOE has also requested the Department of Justice (DOJ) to review whether Sipcor has violated the terms of its supply agreement, Garin disclosed.
