Inefficiencies of electric cooperatives in tourism hubs have led to financial losses and closure of some businesses, as establishments struggle due to unreliable power supply, frequent outages, and poor service response.
Focus group discussions (FGDs) conducted by the energy consumer group ILAW with business owners, particularly in the hospitality and food industries, in key tourism areas—Island Garden City of Samal (IGACOS), Siargao Island, Cebu, and Puerto Galera—revealed widespread dissatisfaction with their electric cooperatives. The FGDs were also carried out to determine and assess the energy challenges affecting the said areas, in order to provide data-driven recommendations for local and national policymakers in aiding tourism businesses.
ILAW national convenor Beng Garcia and youth convenor Francine Pradez presented the FGD results during a press conference on Wednesday in Manila.
Businesses singled out cooperatives such as the Northern Davao Electric Cooperative (NORDECO), Siargao Electric Cooperative (SIARELCO), and the Oriental Mindoro Electric Cooperative (ORMECO), rating their service and performance as subpar, causing undue burden that led to financial losses and, in some cases, business closures.
Business owners in IGACOS gave NORDECO the lowest rating of 2.45 out of 10, due to prolonged blackouts and poor service response, resulting in P50 million in annual tourism losses. They also warned that continued power instability could erode investor confidence, hamper job creation, and stifle economic growth.
“Frequent and prolonged blackouts have disrupted the tourism industry, which is the lifeblood of businesses in the area, and the way of life on the island,” an FGD participant pointed out.
SIARELCO, for its part, received an average rating of 4.6, with some businesses rating it as low as 1. The island experiences frequent power outages and voltage fluctuations, leading to equipment damage and business losses of up to P100,000 per blackout incident.
ORMECO was rated 4.5 out of 10, with businesses in Puerto Galera complaining about unannounced power outages, lack of infrastructure investment, and frequent disruptions that have forced establishments to offer customer refunds or cut prices.
“As a desperate move, some businesses are forced to lower prices or offer compensatory services, further cutting into their profits. Some businesses have closed shops due to the unreliable power supply, leaving some residents unemployed,” a businessman in Puerto Galera said.
Meanwhile, Cebu tourism and business stakeholders 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 improve their performance and ensure reliable power supply that meets the present and future demands of their franchise areas.
“It’s time for our electric cooperatives to step up and ensure reliable and efficient power supply, especially in key tourism areas where businesses and livelihoods depend on stable electricity,” Garcia said.
“Continued power instability threatens business sustainability, job security, and the long-term growth of the tourism sector. If this persists, businesses will have no choice but to shut down, leaving many without jobs,” Pradez added.
The group called on the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to impose stricter accountability measures on electric cooperatives operating in tourism hubs.
It also stressed the need for penalties for service failures and the implementation of mandatory compensation policies to protect affected businesses. The group also recommended investing in renewable energy, community microgrids, and energy storage systems to provide more reliable power to tourism zones.
The organization also emphasized that close coordination between the Department of Tourism (DOT), the Department of Energy (DOE), and the Energy Regulatory Commission (ERC) is essential to effectively represent the tourism sector’s interests in energy planning.