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Zamboanga City has emerged as a vital economic engine in the southern Philippines, consistently driving growth within the Zamboanga Peninsula region. The city’s gross domestic product (GDP) reached an estimated ₱151.33 billion in 2024, posting a 4.9 % growth rate compared with the previous year, faster than its 3.4 % growth in 2023, reflecting resilient economic performance post-pandemic.
In recent years, the city has maintained robust expansion across services, financial activities, and transportation sectors, while infrastructure and business development have increasingly contributed to local wealth creation.
Electricity reliability and affordability are core to economic development. Without stable and fairly priced power, businesses struggle to operate, tourism becomes less competitive, and communities face daily hardships.
In Zamboanga, the critical role of electric cooperatives (ECs), particularly the Zamboanga City Electric Cooperative (ZAMCELCO), cannot be overstated. Over the past decade, ZAMCELCO has not only expanded electrification but has also strengthened the region’s economic prospects, improved service delivery, and accelerated community development in measurable ways.
(Also read: Mindanao Brightens Its Future: Racing Toward a 50-50 Renewable Energy Mix by 2030)
Spotlight on ZAMCELCO’s Achievements
The Zamboanga City Electric Cooperative, Inc. (ZAMCELCO) has been the principal electricity distributor in Zamboanga since its first barangay energization in 1976. Starting with just nine energized barangays, it has expanded to serve virtually the entire city with on-grid power across approximately 90 barangays and roughly 120,000 active member-consumers.
Under the law, Philippine ECs are community-owned utilities. They operate not to generate profit for shareholders, but to provide reliable and affordable electricity to their members. Their structure dictates that any excess revenues are reinvested into service improvements or returned to the community, aligning their goals with local development and inclusive growth.
Building on this framework, ZAMCELCO’s performance improvements over recent years demonstrate how sound governance and strategic technical management can translate into tangible benefits for consumers, businesses, and the broader local economy.
Strengthening Service Delivery and Governance
A major indicator of an EC’s operational health is its rating under the National Electrification Administration (NEA) assessment framework. This comprehensive evaluation measures governance, technical competence, financial stability, electrification levels, customer service, and compliance with reporting requirements.
ZAMCELCO has demonstrated notable progress in NEA ratings, advancing from a “D” rating in 2018 to a “B” rating by 2022. This reflects sustained improvements across multiple performance indicators, from technical reliability to institutional governance.
This remarkable improvement does not happen overnight. It followed a strategic partnership with a joint venture between Crown Investment Holdings, Inc. and DESCO, which took over operations under an Investor-Manager Contract (IMC). This management arrangement infused technical management expertise and operational discipline, leading to measurable enhancements in distribution effectiveness, meter accuracy, and organizational systems.
“The steady improvements to our services tie back to our vision of being an invaluable partner of the local government to develop Zamboanga City into one of the country’s most economically-competitive cities,” noted Rommel Agan, ZAMCELCO chief management officer, “and of course, to empower the communities we serve.”
Affordability for Consumers
One of the most tangible ways ECs support local growth is by keeping power rates affordable for households and businesses.
Despite volatile fuel and commodity prices, ZAMCELCO managed to maintain one of the lowest generation charges in Mindanao’s electric utility sector. In 2023, the cooperative reported its average generation charge at P12.2071 per kilowatt-hour (kWh), which was the second-lowest in the region. According to Agan, this was due to ZAMCELCO’s efforts in “managing the supply contracts of the cooperative to achieve the most favorable power mix for our customers.”
Affordable power rates are more than a numerical statistic; they directly affect costs of living for residents, operating expenses for businesses, and investment decisions by enterprises considering expansion or relocation.
Power Reliability
A reliable electricity supply is not just a convenience; it is a critical infrastructure determinant for economic and social activity. Businesses like hotels, resorts, factories, hospitals, and commercial establishments depend on uninterrupted power to maintain productivity and service quality. Stable electricity also enhances the tourism experience, making cities more attractive destinations for domestic and international visitors.
According to reports on Zamboanga’s economic development, improvements in power stability have contributed directly to infrastructure and business growth in recent years.
ZAMCELCO’s enhanced capacity, distribution systems, and grid management have supported rising consumption, which in turn enables local industries and service sectors to operate more competitively.
Expanding Consumer Base
ZAMCELCO’s growth in consumer numbers also signals greater electrification and socio-economic engagement across the city. From 2017 to 2022, total billed consumers rose to over 125,000, representing expanding household and business connections. This growth reflects not just an extension of infrastructure, but the deepening integration of electricity into everyday life and economic activity.
Improved power production and distribution have fueled Zamboanga’s growth, attracting investments and creating jobs. Major projects include the Sadik Grand Mosque, Grand Astoria Hotel Tower 3, a second SM City mall, ACE Medical Center, Grand CityMall Guiwan, Futura Vinta—the city’s first mid-rise condominium—and plans for a new Zamboanga International Airport. Reliable electricity has also boosted tourism, enabling hotels, resorts, and other establishments to offer comfortable experiences, enhancing the city’s appeal and driving economic growth.
This growth reflects not just an extension of infrastructure, but the deepening integration of electricity into everyday life and economic activity.
System Efficiency
ZAMCELCO has also engaged in collaborative measures to improve system efficiency and loss reduction — a persistent challenge for many cooperatives that affects financial viability and service levels.
Working with the NEA and other Mindanao ECs, ZAMCELCO took part in the Task Force Metro Zamboanga initiative. This task force brought together linemen, metering personnel, and engineers from across the region to support targeted inspections, large-scale meter replacements, and database corrections aimed at reducing power theft and unmetered usage that contribute to high system losses.
ZAMCELCO currently experiences a system loss of 18–19% monthly, translating to revenue shortfalls of P55 to 60 million. By comparison, the Energy Regulatory Commission (ERC) sets the allowable system loss for ECs at just 8.25% per month.
To address this, the team plans to conduct comprehensive inspections, carry out large-scale meter replacements across residential and commercial accounts, and update the customer database for accuracy.
Legal Victory
Recently, ZAMCELCO achieved a legal win after eight individuals were convicted for illegal electricity pilferage. On February 6, 2026, Judge Manuel M. Wee Sit IV promulgated judgment in Criminal Case Nos. 56734 and 56735, finding all accused guilty of pilferage and violating Section 2 of RA 7832.
“These convictions send a clear and strong message: ZAMCELCO will not tolerate electricity pilferage,” said Agan.
The case stemmed from a March 25, 2025, operation by the National Bureau of Investigation (NBI), local police, military personnel, and ZAMCELCO’s Energy Recovery Team at Purok 7, San Juaniño Village, Barangay Mampang. The operation targeted suspected violations of the Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act of 1994, with formal charges filed the following day.
Of the eleven initially apprehended, three settled their differential billing, while the remaining eight faced trial.
Under Section 2 of R.A. No. 7832, it is illegal for any individual or entity to tap or make unauthorized connections to power lines or electric service facilities, or to knowingly use electricity obtained through such acts. These convictions reinforce ZAMCELCO’s commitment to protect its infrastructure, ensure fair billing, and uphold the law against energy theft.
(Also read: From Deficit to Surplus: Mindanao Emerges As Reliable Power Hub)
Bright Horizons
The ECs of Zamboanga have transformed how communities access power. The Zamboanga del Norte Electric Cooperative (ZANECO) has modernized communication and customer support through PLDT Enterprise, while projects like the Light-a-Home initiative with AboitizPower brought electricity to remote barangays.
Meanwhile, the Zamboanga del Sur Electric Cooperative (ZAMSURECO) I was recognized at the 2025 NEA Lumens Awards as one of the country’s top-performing ECs. Earlier this year, ZAMSURECO II conducted line‑clearing activities, demonstrating active efforts to improve reliability and reduce system disruptions for member‑consumers.
Together, these ECs provide consistent power across difficult terrain, bring electricity to underserved communities, and support local economies. Their efforts go beyond delivering energy; they nurture growth, opportunity, and progress, lighting homes and fueling the development of the entire Zamboanga Peninsula.
Sources:
https://rsso09.psa.gov.ph/city-zamboangas-economy-grows-49-percent-2024
https://lawphil.net/statutes/repacts/ra1969/ra_6038_1969.html
https://businessmirror.com.ph/2023/08/02/nea-affirms-zamcelcos-ec-rating-improvement
https://mindanaogoldstardaily.com/archives/138837
https://mb.com.ph/2023/6/18/zamcelco-credits-stable-power-supply-for-growth
https://www.pna.gov.ph/articles/1257448
https://newsline.ph/aboitizpower-zaneco-signs-light-a-home-project-for-christmas
https://web.philreca.org/assets/images/philreca/publications/press_release/2025/august/14a.pdf
