A Court of Appeals freeze order on the operating accounts of Sunwest Water and Electric Co. Inc. (SUWECO) and SUWECO Tablas Energy Corp. (STEC) is threatening the power supply for about 125,000 households across Catanduanes and Tablas islands.
The affected households, which include 70,000 in Catanduanes Island and 55,000 in Tablas Island, are located in Special Power Utilities Group (SPUG) areas.
The freeze order stems from an ongoing investigation into a flood control controversy allegedly linking Rep. Zaldy Co to SUWECO and STEC, the main power suppliers for the two islands.
SUWECO and STEC said they had sought clarification and guidance from the Department of Energy (DOE), the Energy Regulatory Commission (ERC) and the National Electrification Administration (NEA). They said the government intervention restricts their capacity to comply with existing obligations to the electric cooperatives they serve.
First Catanduanes Electric Cooperative, Inc. (FICELCO) and Tablas Island Electric Cooperative, Inc. (TIELCO) are also seeking assistance from the government.
The SUWECO-FICELCO power supply agreement began in November 2010 and has a 30-year cooperation period, with 15 years remaining until 2040.
The STEC-TIELCO agreement has a 15-year term, commencing in August 2019 with nine years remaining until 2034.
The freeze order also applies to the operating accounts of SUWECO 2 and the joint venture between SUWECO and Sorsogon Electric Cooperative II (SORECO II) for the Cawayan Upper hydro project in Barangay Guinlajon in Sorsogon City.
