IPIL, Zamboanga Sibugay, Philippines โ Reliable power remains an unsteady promise for farmers tending coconut groves and families in scattered coastal barangays across Zamboanga Sibugay. It is the difference between studying after sunset and sitting in darkness, between functioning irrigation and withered crops, between modern aspirations and rural isolation.
For years, however, that promise has flickered for tens of thousands of member-consumers of Zamboanga del Sur II Electric Cooperative, Inc., better known as ZAMSURECO II. High system losses, financial strain, frequent interruptions, and governance breakdowns have kept the cooperative under direct supervision of the National Electrification Administration (NEA) since 2019 โ a prolonged intervention in the countryโs rural power sector.
Adding to the frustration is that while consumers here have paid into the national Feed-in Tariff Allowance (FIT-All) for more than a decade โ a universal charge on bills meant to spur renewable energy development โ the regionโs abundant solar, hydro, and biomass potential remains largely untapped. Billions of pesos collected nationwide have subsidized RE projects elsewhere, but in Zamboanga Sibugay, diesel dependence and reliability woes persist.
A Board Dissolved, Outsider Management, and Lingering Losses
In 2019, NEA deactivated ZAMSURECO IIโs Board of Directors for its โfailure and inability to lead.โ Jose Raul A. Saniel, general manager of the stronger neighboring ZAMSURECO I, was tapped as Project Supervisor and Acting General Manager. He took charge of operations, finances, and reforms.
The arrangementโstill in effect more than six years later, according to recent regulatory filingsโhas cycled through a succession of NEAโappointed supervising managers, underscoring entrenched institutional challenges.
High system losses โ driven by technical inefficiencies, aging infrastructure, and non-technical issues like pilferage โ have long drained resources in this sprawling franchise area. Infrastructure upgrades, including a new 20 MVA transformer at the Pangi substation, have eased some overloads, yet scheduled and unscheduled outages continue to disrupt daily life.
Renewables Promised, but Slow to Arrive
Zamboanga Sibugay possesses significant renewable potential. Provincial initiatives include a 2022 memorandum with a French firm for solar farms paired with hydrogen storage on Olutanga Island. HDF Energy, or Hydrogรจne de France, signed an agreement in 2022 with the Mindanao Development Authority, the Zamboanga Sibugay provincial government, three municipalities on Olutanga Island, and the Zamboanga del Sur II Electric Cooperative.
The partnership, according to Mathieu Geze, HDFโs director for Asia and president director of HDF Energy Philippines, seeks to develop โRenewstableโ power plants to provide stable and ecoโfriendly electricity in the region. The project advanced in 2023 when Gov. Dulce Ann Hofer signed a new memorandum of agreement with HDF Energy, a French company specializing in hydrogen power. Palmaโs term as governor ended in 2022.
Progress, however, has been incremental at best. The planned hydrogen power has not gotten off the ground.
Nationwide, the FIT-All charge โ currently around PhP 0.08+ per kWh in recent billings for the area โ has funneled funds from consumers, including those in ZAMSURECO IIโs franchise, into a renewable energy trust. The policy was designed to guarantee payments for qualified RE generators and accelerate the shift away from fossil fuels. In practice, many rural cooperatives have struggled to develop or contract local RE capacity at scale, leaving the regionโs sun-drenched landscapes and possible hydro resources underutilized while power remains costly and intermittent.
Under NEA oversight, ZAMSURECO II has notched some gains: substation upratings, line improvements, and recognition in NEAโs Golden Dagitab awards. But full return to local board control hinges on deeper financial recovery, loss reduction, and demonstrable service improvements. Critics among member-consumers point to the slow pace of both reliability fixes and renewable integration.
The Broader Stakes for Rural Electrification
ZAMSURECO IIโs challenges mirror those of many Philippine electric cooperatives serving low-density, remote areas: thin margins, aging grids, and governance hurdles. National electrification rates have risen impressively, yet quality and affordability in places like Zamboanga Sibugay still lag. The human cost is tangible โ lost study hours for students, spoiled goods for small businesses, and risks for health centers.
NEA describes its role as supportive rehabilitation, not permanent control. For renewables, the gap between collections and local deployment raises questions about how effectively the FIT-All mechanism translates into on-the-ground benefits for paying consumers. Cooperatives like ZAMSURECO II sit at the intersection of policy ambition and rural reality as the Philippines pushes broader RE targets.
As of mid-2026, the cooperative presses ahead with maintenance and upgrades while remaining under external supervision. Its path to independence โ and to harnessing local clean energy โ will determine whether the lights in these far-flung communities finally burn steadily and sustainably. For now, the promise of reliable, greener power in Zamboanga Sibugay remains as elusive as ever.
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