#CulturePH - Power Struggles: How Electric Coops Are Impacting Tourism and Local Businesses

Imagine planning a dream vacation to a beautiful island, only to find yourself stuck in the dark due to frequent power outages. This frustrating scenario is a reality for many business owners and tourists in popular destinations like Siargao Island, Cebu, Puerto Galera, and the Island Garden City of Samal (IGACOS). The inefficiencies of electric cooperatives in these areas are causing significant financial losses and even leading to business closures.

The Power Problem

Electric cooperatives such as NORDECO, SIARELCO, and ORMECO have been under fire for their unreliable power supply and poor service response. Business owners in these tourism hubs have expressed their dissatisfaction through focus group discussions (FGDs) conducted by the energy consumer group ILAW. The results were presented by ILAW national convenor Beng Garcia and youth convenor Francine Pradez during a press conference in Manila.

Impact on Businesses

In IGACOS, NORDECO received a dismal rating of 2.45 out of 10 from business owners. Prolonged blackouts and poor service response have resulted in an estimated P50 million in annual tourism losses. The instability of power supply is not just an inconvenience; it threatens investor confidence, job creation, and economic growth.

Siargao Island's SIARELCO didn't fare much better, with an average rating of 4.6. Frequent power outages and voltage fluctuations have led to equipment damage and business losses of up to P100,000 per blackout incident. Similarly, ORMECO in Puerto Galera was rated 4.5 out of 10, with businesses complaining about unannounced power outages and lack of infrastructure investment. These disruptions have forced establishments to offer customer refunds or cut prices, further eating into their profits.

A Call for Change

Cebu's tourism and business stakeholders have emphasized the urgent need to modernize existing energy infrastructure to meet the increasing power demand driven by the province's expanding economy. With tourism serving as a major economic driver in these areas, ILAW has called on electric cooperatives to step up their game and ensure reliable power supply.

Garcia stressed the importance of reliable and efficient power supply, especially in key tourism areas where businesses and livelihoods depend on stable electricity. Pradez added that continued power instability threatens business sustainability, job security, and the long-term growth of the tourism sector.

ILAW is urging the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to impose stricter accountability measures on electric cooperatives operating in tourism hubs. They also recommend investing in renewable energy, community microgrids, and energy storage systems to provide more reliable power to tourism zones. Close coordination between the Department of Tourism (DOT), DOE, and ERC is essential to effectively represent the tourism sector’s interests in energy planning.

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