The National Electrification Administration (NEA) is checking the delayed SIPCOR power project in Palawan as consumers raise concerns over the continued use of emergency power supply arrangements by the Palawan Electric Cooperative (PALECO).
The review comes as Palawan power consumers asked the Energy Regulatory Commission (ERC) to explain why PALECO allegedly remains under an Emergency Power Supply Agreement (EPSA) setup, despite the conduct of several Power Supply Agreement (PSA) biddings. Consumers said the situation has kept electricity costs high for almost three years.
In a letter sent recently to ERC chairman Atty. Francis Saturnino Juan, Dr. Antonio Cabrestante, a member-consumer-owner of PALECO, questioned why the power cooperative is still operating under an EPSA, which he said has resulted in high electricity costs for consumers.
Cabrestante also raised the issue of the undelivered 40-megawatt power supply agreement awarded in 2018 to S.I. Power Corporation (SIPCOR), a firm linked to the Villar group.
He asked regulators to clarify what penalties or liabilities the company faces for failing to build the power plant in Barangay Manalo, Puerto Princesa City, despite having a contract in place for several years.
“These are the issues that made the life of Palawan residents miserable,” Cabrestante said in his letter.
He further pointed to the discovery of new natural gas fields in Palawan, citing Republic Act No. 7160, which states that proceeds from natural gas and oil resources should be used to subsidize electricity consumption in the nearest province or municipality where these resources are located.
Cabrestante said Palawan residents have not benefited from previous gas and oil developments in the province.
Amid the renewed calls for accountability, NEA Administrator Antonio Mariano Almeda said Monday that he is personally checking the status of SIPCOR’s planned 20-megawatt power plant, which was intended to add supply for PALECO.
“Actually, kaya rin ako nandito because I want to see for myself what is the development in SIPCOR’s 20MW power plant. I am scheduled to visit the site tomorrow and I will reserve my comment after I am able to inspect the site and try to dig deeper on what has been the cause of delay and what has been the cause of delay and the propriety of the whole project,” he said during a press briefing at PALECO.
“20MW is something that will greatly affect the load profile of PALECO and if I have to call the attention of my boss, Secretary Sharon Garin, then I have to.” Almeda added.
He said the project is already delayed by two to three years and would have a significant impact on PALECO’s load profile once completed.
“So we have to address this matter because I believe we are already 2 or 3 years delayed and I have to get to the bottom. So, I will reserve my comment after my inspection tomorrow,” Almeda said.
Almeda stressed that NEA has no authority to impose sanctions on delayed power projects.
“Well that is not within the powers of NEA, that’s outside the ambit of NEA, that is something that the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) should address,” he said.
The continued delay of long-term power supply projects has kept Palawan dependent on emergency power contracts, a situation that consumer groups say continues to drive up electricity costs in the province.
In September 2025, Provincial Board Member Ryan Maminta called for the revocation of the PSA of SIPCOR with PALECO for failing to deliver the promised 20-megawatt capacity.
He said the province expected to receive conventional and solar energy from SIPCOR for 15 years as part of a PSA with Prime Asset Ventures, Inc. (PAVI), which is controlled by the Villar family and owns SIPCOR.
“Two years since… what [did] SIPCOR deliver to Palawan? No power, no reliable 20 megawatts capacity, only litigation, delay and broken trust,” Maminta said.
Maminta warned that Palawan must avoid suffering the same fate as Siquijor, where the ERC revoked the authority of its power provider to operate.
