Albay Mayors Issue Ultimatum to ALECO over Blackouts and 5 Billion Peso Debt
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Mayors across Albay gave electricity distributor ALECO until the end of October 2026 to resolve weekly blackouts affecting businesses and households across the province.
The ultimatum follows more than 867 million pesos in state funds poured into the utility since 2025 without halting chronic power disruptions.
ALECO operations head Mark Lucilo stated that Phase 1 construction of the substation network, budgeted at 367 million pesos, will finish before the end of 2026. Recent outages stemmed from installing a 1×20 MegaVolt-Amperes transformer at the Cullat substation and expanding the Ligao City substation from 20MVA to 40MVA capacity. Management confirmed that these installations required de-energizing lines across distribution corridors to allow technical crews to work safely.
Substation Upgrades and Scheduled Cuts
Distribution upgrades across Albay require line shutdowns that hit local merchants, cold chain operators, and municipal offices during standard trading hours. ALECO board president Eddie Gumba stated earlier that new substations in Ligao City and Daraga town aim to stabilize voltage and meet growing industrial demand. Municipal leaders maintain that prolonged downtime without reliable schedules leaves commercial operations exposed to equipment damage and revenue loss.
League of Municipalities of the Philippines Albay chapter president and Camalig Mayor Caloy Baldo stated that local executives will report the cooperative to national regulators if service fails to stabilize after October. Mayors also requested that ALECO general management and primary contractors attend future provincial coordination hearings in person to address technical delays.
State Subsidies and Balance Sheet Pressure
Capital injections from national agencies have yet to translate into reliable power delivery. The cooperative secured 367 million pesos in national rehabilitation funding in 2025, alongside a 500 million peso subsidy through the National Electrification Administration and the Ako Bicol Party-list. Despite that liquidity, the cooperative carries accumulated debts estimated between 5 billion and 6 billion pesos.
“ALECO operations head Mark Lucilo stated that Phase 1 construction of the substation network, budgeted at 367 million pesos, will finish before the end of 2026.”
High debt levels limit the cooperative’s ability to procure emergency power capacity during peak usage cycles. For commercial tenants and regional retail chains expanding into Bicol, infrastructure bottlenecks raise private operating costs through mandatory spending on diesel generator backup and maintenance. That structural overhead dampens provincial investment appetite compared to Luzon grids operated by private concessionaires.
Commercial Exposure and Alternative Providers
Rising utility rates compound the issue for local commerce. Power bills have climbed sharply alongside service disruptions, forcing small enterprises to absorb higher operating expenses during periods of frequent downtime.
“Our bill nearly doubled despite persistent power interruptions. It’s deeply frustrating because, on top of disrupting our daily household routines and business transactions, we are paying significantly more for electricity while Albay’s power services remain completely unreliable,” Azores said.
Provincial leaders have begun evaluating structural alternatives to the cooperative model. Albay Governor Noel Rosal demanded in July 2026 that ALECO deliver a verified debt servicing strategy, warning that the provincial government could back a replacement distributor if current operators fail to restore stable supply.
Governance Deadlines and Fiscal Scrutiny
Rosal called on ALECO to present an audited financial and operational report before a Special Annual General Membership Assembly to clarify how it handles outstanding liabilities. The provincial government will review those filings to determine whether the utility can maintain its franchise mandate independently.
Technical teams face an immediate benchmark on October 31, 2026, when ALECO committed to ending weekly distribution interruptions across all municipal circuits.
Questions & Answers
Q.When does ALECO expect to complete the first phase of its substation network construction?
When does ALECO expect to complete the first phase of its substation network construction?
ALECO operations head Mark Lucilo stated that Phase 1 construction of the substation network, budgeted at 367 million pesos, will be finished before the end of 2026.
Q.What is the total estimated debt currently carried by the ALECO cooperative?
What is the total estimated debt currently carried by the ALECO cooperative?
Despite recent state funding, the cooperative carries accumulated debts estimated between 5 billion and 6 billion pesos, which limits its ability to procure emergency power capacity.
Q.What is the ultimate deadline for ALECO to resolve the persistent blackouts?
What is the ultimate deadline for ALECO to resolve the persistent blackouts?
Mayors across Albay gave electricity distributor ALECO until the end of October 2026 to resolve weekly blackouts affecting businesses and households across the province.
Q.What action might provincial leaders take if ALECO fails to improve its service?
What action might provincial leaders take if ALECO fails to improve its service?
Albay Governor Noel Rosal warned in July 2026 that the provincial government could back a replacement distributor if current operators fail to restore a stable supply. Mayors also plan to report the cooperative to national regulators.
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