AI in Accounting is Reshaping How Firms Train Future Finance Leaders

  

As AI automates routine accounting work, firms face a new challenge: developing the next generation of accountants and finance leaders while maintaining the human judgment, accountability, and expertise the profession requires.

Accounting firms are accelerating their use of artificial intelligence while confronting a parallel concern: many of the repetitive, lower–risk activities being automated have traditionally helped junior accountants learn financial systems, internal controls, audit procedures, and professional skepticism.

The issue has gained urgency in 2026 as professional organizations examine how accounting automation will affect early-career roles and the development of future managers, partners, controllers, and CFOs.

Research published by the Institute of Chartered Accountants in England and Wales on May 22, 2026, found that 68% of participating firms believed AI would reduce demand for some early-career accountants. However, 83% agreed that this would not directly result in fewer accounting roles overall. 

The survey covered managing partners and CEOs from 35 UK mid-tier ICAEW member firms and was conducted between February and March 2026. Its findings reflect the expectations of this specific group and should not be treated as a global accounting-industry survey.

Meanwhile, the American Institute of CPAs launched its Profession Ready Initiative in early 2026 to identify the capabilities aspiring and early-career CPAs will need in an increasingly AI-driven workplace. The project is studying entry-level professionals and CPAs at approximately the four-year career stage, with research, public consultation, and final resources expected to continue into 2027.

Together, these developments suggest that the immediate challenge is not simply whether AI will eliminate accounting jobs. The larger question is whether firms can redesign work quickly enough to preserve the learning experiences that develop professional judgment.

More than 3,000 new Philippine CPAs enter a changing profession

The issue is particularly relevant to the Philippines.

On June 2, 2026, the Professional Regulation Commission announced that 3,004 of the 9,745 candidates who took the May 2026 Certified Public Accountants Licensure Examination passed.

These results represent a substantial new cohort of Philippine accounting talent entering or preparing to enter–a profession in which employers are reconsidering the work assigned to junior employees.

The examination results do not measure AI readiness, employability, or the supply and demand for accountants.

However, they illustrate the number of newly qualified professionals whose career development may be affected by changes in accounting technology, finance outsourcing, and global service-delivery models.

For Philippine accounting graduates, the changing environment could create both opportunity and risk.

Automation may reduce the time spent on transaction processing and routine verification, but employers may consequently expect new professionals to develop analytical ability, technological fluency, communication skills, and professional judgment earlier in their careers.

Philippine accounting outsourcing is moving toward higher-value work

The OECD’s 2026 Economic Survey of the Philippines, citing 2025 information from the IT and Business Process Association of the Philippines, reported that the Philippine IT-BPM industry employed approximately 1.8 million people, representing around 3.7% of total employment, and generated revenue equivalent to around 8% of GDP. 

The OECD also noted that the industry has been diversifying beyond contact-center and back-office work into higher-value areas such as global capability centers, healthcare information management, IT, software, data analytics, and knowledge-process services.

It warned, however, that AI creates significant exposure for routine clerical work and that workforce upgrading will be necessary for AI-intensive global service delivery. 

On April 19, 2026, the Philippines' Department of Finance similarly reported that the BPO industry was evolving toward higher-value services involving artificial intelligence, data analytics, and IT-enabled work.

Finance Secretary Frederick Go identified the sector as one of the industries expected to contribute to the country’s next wave of employment.

For Philippine accounting outsourcing providers, the implication is that long-term competitiveness cannot depend solely on transferring repetitive work from higher-cost markets.

Accounting talent will increasingly need to contribute through analysis, exception management, controls, reporting, client communication, technology oversight, and decision support.

Firms must redesign learning–not only automate tasks

Eduard Ortega, CPA, CMA, Founder and CEO of Remotely Philippines, said the profession should treat training design as part of its AI and finance transformation strategy.

“The firms that thrive won’t simply automate accounting – they’ll redesign how accountants learn, exercise judgment, and create value,” Ortega said. “AI should accelerate professional development, not replace it.”

Vouching – the process of comparing accounting records with supporting documentation–is one example of foundational work increasingly supported by technology.

AI-powered audit tools can accelerate portions of that process, but professionals still need to understand why the procedure is performed, what evidence is appropriate, and how to identify an output that may be incomplete or incorrect.

This changes the role of entry-level accountants. Instead of spending most of their time compiling information, junior professionals may be asked earlier to evaluate exceptions, investigate inconsistencies, interpret results, and communicate findings.

It also changes the responsibility of managers. When accounting automation reduces the volume of routine preparation work, firms must find other ways to provide repetition, feedback, review exposure, and progressively more complex assignments.

What CFOs and accounting firms are asking about AI

From Remotely Philippines’ experience supporting accounting firms and finance teams, expectations are increasingly extending beyond whether outsourced professionals can complete a defined task.

Clients also look for team members who can understand workflows, identify exceptions, communicate clearly with reviewers, and take ownership of work quality. 

According to Ortega, this makes AI governance and human accountability central to both in-house finance transformation and outsourced accounting services. 

“The most useful question is no longer simply whether a tool can perform an accounting task,” Ortega said.

“Finance leaders also need to ask who reviews the result, whether that person understands the underlying process, how client data is protected, and who remains accountable when the output is wrong.”

AI in accounting should therefore be implemented as a controlled productivity and insight layer. Human authorization should remain in place for accounting judgments, postings, reconciliations, payments, and client-facing outputs.

Five actions firms should take over the next 12 months

Accounting firms, CFOs, and finance leaders can take five practical steps as they expand their use of AI: 

1. Map tasks against learning outcomes 

Before automating a process, identify what employees currently learn by performing it. If automation removes that experience, determine how the underlying knowledge will be taught and assessed. 

2. Define human review and accountability 

Document who reviews AI-generated work, what evidence reviewers must examine, which exceptions require escalation, and who has final authority over the output. 

3. Redesign junior accounting roles

Give early-career professionals structured exposure to exception investigation, account analysis, controls, client communication, forecasting, reporting, and process improvement–not only transaction processing. 

4. Train managers to coach AI-enabled teams 

Managers will need to explain underlying accounting principles, evaluate employees’ reasoning, and provide feedback even when software performs part of the original task.

5. Measure development alongside efficiency

Track quality, review findings, training hours, client exposure, promotion readiness, retention, and progression into higher-value responsibilities. Hours saved should not be the only measure of successful accounting automation.

Questions leaders should ask before adopting an accounting AI tool

Before implementing AI in accounting or finance outsourcing, leaders should ask:

- Which tasks will the technology perform or influence?

- What professional knowledge was previously developed through those tasks?

- Who will review the output and approve the final decision?

- What financial or client information will enter the system?

- How will incorrect, unsupported, or unusual outputs be escalated?

- Can the employee reviewing the result explain the underlying accounting treatment?

- How will the technology affect junior-level training and career progression?

- What quality, privacy, security, and financial-control measures must remain unchanged?

These questions help distinguish controlled technology enablement from automation that creates new operational or professional-development risks.

A broader conversation for the accounting profession

For local accounting firms, the transition creates an immediate workforce-development challenge. For Philippine accounting graduates, it raises the standard for technological fluency and professional judgment.

For accounting outsourcing and finance outsourcing providers, it creates an opportunity to move toward more analytical, supervised, and technology-enabled services.

That opportunity will depend on whether employers provide real progression rather than simply relocating routine work.

Responsible Philippine accounting outsourcing should enable professionals to move from preparing work to reviewing it, explaining it, improving the process, and eventually leading engagements.

“As AI adoption accelerates across the accounting profession, the conversation should shift from what technology can automate to how firms can continue developing future finance leaders,” Ortega said.

The future accounting team is unlikely to be entirely human or entirely automated. Its effectiveness will depend on how well firms combine technology with professional skepticism, governance, accountability, and human judgment.

About Remotely Philippines Inc.

Remotely Philippines is a professional services firm delivering end-to-end accounting, assurance, advisory, and compliance solutions for businesses worldwide. 

Strengthened by our core values of accountability, inclusivity, and transparency, we provide custom, future-ready solutions that empower organizations to stay compliant, streamline operations, and achieve sustainable growth across markets.

Our team of highly skilled Filipino professionals combines global standards with local expertise - ensuring precision, efficiency, and financial reliability. This allows our clients to focus on strategy, while we safeguard the financial backbone of their business.

The Hidden Cost of Disconnected Business Systems

MANILA, Philippines — Many businesses unknowingly lose opportunities because customer information, marketing activities, booking systems, and internal processes are spread across multiple disconnected platforms.

While each application may perform its individual function well, the lack of integration often results in slower response times, duplicated work, inconsistent reporting, and fragmented customer experiences.

Emerge believes business leaders should shift the discussion away from buying more software and toward building connected business systems.

Through its HUGS methodology, the company encourages organizations to align marketing, sales, customer service, and operations around a common customer journey supported by practical automation and AI where appropriate.

The objective is not digital transformation for its own sake, but better customer experiences, improved operational efficiency, and sustainable growth.

“Technology should remove friction, not create it. Our goal is to help businesses simplify operations so their teams can focus on customers and growth.” — Richard Noromor, Founder & President, Emerge

About EmergeLocal, Inc.

Emerge is an AI-Powered Digital Marketing Company in the Philippines focused on helping businesses build AI-powered Business Growth Systems through its HUGS (Humans Using Growth Systems) methodology. The company combines strategy, technology, marketing, AI, local expertise and business systems to help organizations improve customer experience and sustainable growth.

MX3 Draws Strong Demand at ASAP Sydney , Inspires Visitors with Faith and Wellness

Sydney, Australia – MX3 made a remarkable impact at ASAP Sydney, drawing overwhelming interest from attendees and reinforcing the brand's growing presence in Australia.

Even before the event officially opened, the MX3 booth was already crowded with Filipinos eager to purchase and learn more about the products. Many visitors shared that they had discovered and trusted MX3 while living in the Philippines and were excited to see the brand now available in Australia.

The enthusiastic response reflects the strong demand for MX3 products in Sydney, home to a large Filipino community that includes many professionals in the healthcare and medical fields.

The event also showcased the unity of the global MX3 family as team members from New Zealand and the Philippines joined forces to promote the brand and serve customers together. Their collaboration highlighted MX3's commitment to expanding its reach while maintaining strong relationships within the Filipino community abroad.

More than offering product promotions and campaign, MX3 created an atmosphere centered on faith and gratitude. The team led visitors in a prayer, exalting the name of Jesus Christ as the Name above all names, reminding everyone that the company's mission extends beyond business and into honoring God in all that it does.

The event also opened doors for future expansion, as several distributors visited the MX3 booth and expressed strong interest in carrying the brand in Australia.

Their inquiries reflect the increasing recognition of MX3 and its potential to reach even more consumers across the country.

With growing demand, a united international team, and a mission rooted in faith, MX3 continues to strengthen its presence in Australia while touching lives through wellness, service, and a higher purpose.

About DMI Medical Supply Company, Inc.

MX3 is a Philippine health-and-wellness brand owned, manufactured, and distributed by DMI Medical Supply Co., Inc. The company is headquartered at the DMIRIE Center, J.P. Cabaguio Avenue, Davao City.

Green innovators shine at first SSX pitch

  

 Finalists of the SSX pitching competition recognized by IFEX Philippines Project Director Rowena Mendoza and Chief Trade-Industry Development Specialist Katrina Pineda.

Eco-conscious start-ups are proving that the future of business is green. A dynamic group of food and non-food innovators emerged as finalists in "Future Proof: The Green Innovation Pitch"—the first-ever start-up pitching competition under the Sustainability Solutions Exchange (SSX) at the recently concluded IFEX Philippines 2026.  

Eco-conscious start-ups are proving that the future of business is green. A dynamic group of food and non-food innovators emerged as finalists in "Future Proof: The Green Innovation Pitch"—the first-ever start-up pitching competition under the Sustainability Solutions Exchange (SSX) at the recently concluded IFEX Philippines 2026.

The following start-up leaders delivered the most persuasive pitches of the contest’s semi-final stage:

●     Arlyn Jubilee Kalsim of GNS Enterprises, a start-up with sustainable programs transforming waste into valuable, customized products

●     Glenda Esperidal of Green Beauty and Wellness, a social enterprise promoting natural health and beauty

●     Czar Carbonael of Magwai, a producer of reef-safe sunscreen

●     Wilma Alvester of FLQ Foods and Panciteria, producer of cassava powder, cassava polvoron, and cassava crunchies, works with community farmers to ensure a sustainable future for cassava production

●     Mark Sultan Gersava of D’ Sustainable Planet, a social enterprise using bamboo and technology to provide eco-friendly solutions.

Finalist Glenda Esperidal of Green Beauty and Wellness delivers her presentation.    

GNS Enterprises' Arlyn Jubilee Kelsim gives her pitch.

A final round of pitching will be held during the full-scale SSX Conference in October 2026, where two overall winners will be chosen. In addition to monetary prizes, victors will be named delegates to SDG Asia 2027 in Taiwan. 

“Future Proof” gathered a total of eight startups presenting sustainability-driven products and business models across different industries. Each startup was given eight minutes to present its products, scalability potential, and social impact. Members of the competition’s Technical Working Group (TWG) then conducted a seven-minute question-and-answer session with each participant.

Other participants included DEMAF 3D Printing Hub, Veronica Trabilla Upcycling, and Buenavita Food Product.

The TWG was composed of Theodore Cacayan of the Ateneo Institute of Sustainability, Alwyn Joy Rosel of IdeaSpace/QBO Innovation Hub, and Zedrick Avecilla of Philippine Alliance for Recycling and Materials Sustainability (PARMS). To prepare for the finals, the start-up finalists will attend two TWG mentorship sessions between June and September to sharpen their business strategies and presentations.

An initiative of the Center for International Trade Expositions and Missions (CITEM), the pitching competition was designed to support outstanding, market-ready sustainable solutions to build a more resilient future. In her welcome remarks, IFEX Philippines Project Director Rowena Mendoza detailed that the contest was a measure to connect start-ups with experts, investors, and potential partners–figures to help achieve their vision.

“We want to boost start-ups on the verge of breakthroughs, providing networking opportunities to help you reach your potential,” Mendoza said. She added that the competition reflects SSX’s goal of promoting enterprises that create a positive environmental and social impact.

“Today’s competition can be a game-changer—a doorway to stronger partnerships and real market traction for your ideas,” Mendoza declared.

Reflecting on SSX’s growth, CITEM Executive Director Leah Pulido Ocampo said she was honored to see the platform–her brainchild–garner support from promising start-ups. “From the very beginning, the principal objective of SSX has been to support our sustainability-oriented enterprises,” Ocampo explained. “This is anchored in our belief that circularity and sustainability are essential to achieving global competitiveness.”

“We look forward to seeing the contest yield opportunities for these great thinkers and innovators,” Ocampo continued. “Moving forward, CITEM will continue to affirm its commitment to sustainability, developing initiatives to advance the Philippines’ green agenda.”

Spotlighting “Tropical Flavors for the World,” IFEX Philippines 2026 featured more than 500 exhibitors from the Philippines and overseas across key food product categories. Returning as a specialized feature, SSX highlights technologies, systems, and business models that support circularity and resilience in the food industry in line with the country’s green agenda.

The SSX Conference will run from October 15 to 17, 2026 at the Philippine Trade Training Center (PTTC), concurrent with the staging of the 74th Manila FAME at the World Trade Center Metro Manila. As an expanded conference platform, SSX will broaden the sustainability conversation by promoting circular models across the lifestyle, home, and fashion sectors, as well as smart cities. The program will feature technical discussions, interactive sessions, and knowledge-sharing activities designed to complement Manila FAME’s showcase of Philippine design, craftsmanship, and innovation.

Learn more about transformative green solutions at sustainability.ph.

 

About CITEM

About CITEM The Center for International Trade Expositions and Missions (CITEM) is the export promotion arm of the Philippine Department of Trade and Industry (DTI). CITEM advances the country’s image as a premier sourcing destination for quality export products and services. CITEM is committed to developing, nurturing, and promoting micro, small, and medium enterprises (MSMEs), brands, designers, and manufacturers by implementing an integrated approach to export promotion in partnership with other government and private entities.

MX3 Celebrates Filipino Pride at PIDC NY 2026 Independence Day Celebration

 

Despite the drizzling weather and summer heat, thousands of Filipinos gathered in New York to celebrate unity, heritage, and the enduring spirit of Philippine Independence Day with MX3.

NEW YORK — The spirit of Filipino pride was alive and strong at the PIDC NY 2026 Philippine Independence Day celebration, where thousands of Filipinos came together to honor the country’s freedom, culture, and shared heritage. Despite the drizzling weather and summer heat, the celebration remained vibrant and full of energy, reflecting the resilience, warmth, and unity of the Filipino community.

The event brought together kababayans from different walks of life for a memorable celebration of Philippine Independence Day. From cultural showcases and community gatherings to Filipino businesses and heritage-driven activities, PIDC NY 2026 served as a meaningful reminder of how deeply Filipinos remain connected to their roots, even while living abroad.

Among the brands that received strong support during the celebration was MX3, which became a familiar and welcomed presence among many Filipino attendees. Throughout the event, the MX3 booth attracted visitors who were eager to reconnect with products they had known and regularly purchased back home in the Philippines. Filipinos who wish to learn more about the brand may visit the MX3 official website or browse available products through the MX3 online store.

One of the most memorable highlights of the event was the overwhelming response from Filipinos who shared how much they missed MX3 products. Many attendees expressed excitement upon seeing the brand at the celebration, while others shared personal stories about how MX3 had become part of their everyday lives in the Philippines.

These interactions served as a powerful reminder that customer loyalty goes beyond transactions. For many Filipinos, their continued trust in MX3 reflects years of confidence, satisfaction, and belief in a brand that has become familiar to Filipino households and communities.

The strong booth engagement also highlighted the meaningful role Filipino brands play in connecting overseas communities to home. For Filipinos in New York, seeing MX3 at PIDC NY 2026 was not only an opportunity to access familiar products, but also a way to feel closer to the culture, memories, and everyday experiences they value from the Philippines.

MX3 extends its heartfelt gratitude to everyone who visited the booth, shared their stories, and celebrated Philippine Independence Day with the team. The enthusiasm, warmth, and support shown by the Filipino community made the event truly memorable.

As PIDC NY 2026 celebrated independence, unity, and Filipino identity, MX3 was proud to be part of an event that honored the strength of the Filipino spirit. The celebration reaffirmed the importance of community, heritage, and the lasting connection Filipinos continue to share wherever they are in the world.

Here’s to Filipino pride, strong community ties, and many more years of independence, unity, and shared celebration.

About DMI Medical Supply Company, Inc.

MX3 is a Filipino brand known for its range of wellness products that continue to be supported by communities in the Philippines and abroad. Through events such as PIDC NY 2026, MX3 continues to connect with Filipino families, working professionals, and communities around the world. To learn more, visit the MX3 official website or explore available products through the MX3 online store.

 

Carziqo Launches ER-MX Driverless Ride-Hailing Operations in Phoenix

 

 PHOENIX, Arizona — Autonomous mobility technology company Carziqo has announced the launch of its ER-MX driverless ride-hailing operations in Phoenix, marking another step in the company’s expansion across the United States.

The deployment introduces Carziqo’s ER-MX autonomous vehicle series to the Phoenix metropolitan area, where the vehicles will support the company’s technology-driven ride-hailing and intelligent fleet operations.

Phoenix has emerged as an important testing and deployment center for autonomous transportation. The city already hosts large-scale driverless mobility services, while Arizona requires companies operating autonomous vehicles on public roads to comply with federal requirements, state traffic laws, and policies established by the Arizona Department of Transportation.

Carziqo said its Phoenix operation will prioritize vehicle safety, fleet reliability, real-time operational monitoring, and a consistent passenger experience. The company is expected to adopt a measured expansion strategy, using operational data and local travel patterns to guide future fleet deployment.

Entering a mature autonomous mobility market

The decision to deploy the ER-MX series in Phoenix places Carziqo in a market where residents, businesses, transportation authorities, and other road users already have experience interacting with autonomous vehicles.

Phoenix has also incorporated Vision Zero objectives into its Road Safety Action Plan, reflecting the city’s broader focus on safer streets, transportation planning, and the responsible integration of new mobility technologies.

For autonomous mobility companies, the city presents both an opportunity and a demanding operational environment. Driverless vehicles must navigate urban intersections, residential areas, commercial districts, changing traffic conditions, cyclists, pedestrians, emergency vehicles, and periods of extreme heat.

These conditions will provide Carziqo with an opportunity to evaluate the operational performance of the ER-MX platform in a major American metropolitan area.

“Phoenix represents an important milestone in Carziqo’s development as an autonomous mobility company,” Carziqo CEO Zaydenn Harrington said in announcing the expansion.

“This market combines real transportation demand with an established understanding of autonomous vehicle services. Our objective is not simply to place vehicles on the road, but to build a reliable operating system capable of delivering safe, efficient, and scalable mobility.”

Harrington said the company intends to take a long-term approach to the market, with particular attention given to operational discipline and public confidence.

“Autonomous mobility must earn trust through consistent performance,” he said. “That requires responsible deployment, transparent operating standards, continuous monitoring, and the ability to respond effectively to real-world conditions.”

ER-MX designed for autonomous ride-hailing

Carziqo developed the ER-MX series for driverless ride-hailing and centrally managed fleet operations.

Rather than treating each vehicle as an isolated transportation unit, the company’s operating model connects vehicles to a broader fleet-management system. This allows vehicle availability, trip demand, operational status, and fleet utilization to be managed through a coordinated platform.

According to Carziqo, this structure is intended to improve order allocation, reduce unnecessary vehicle downtime, and position available vehicles closer to areas of anticipated passenger demand.

Real-time monitoring is also expected to play a central role in the Phoenix deployment. Autonomous vehicles may encounter unusual road conditions that require operational review, including temporary construction zones, blocked lanes, traffic-control changes, emergency activity, or unexpected passenger requests.

Carziqo said its operational framework is designed to combine autonomous driving capability with centralized fleet supervision and incident-response procedures.

The company added that vehicle performance and operating data from Phoenix will be used to improve dispatching, route planning, energy management, and service reliability.

Safety and regulatory compliance remain central

The commercial expansion of driverless ride-hailing has brought increased attention to safety reporting, regulatory accountability, emergency-response coordination, and the ability of autonomous systems to handle unpredictable traffic situations.

Arizona permits autonomous vehicles to operate on public roads, but operators remain subject to applicable federal and state requirements.

Carziqo said its Phoenix operation will be carried out in accordance with applicable transportation and vehicle regulations. The company also emphasized that expansion decisions will be based on operational readiness rather than fleet growth alone.

Industry observers have increasingly argued that the long-term success of autonomous ride-hailing will depend not only on driving technology, but also on how effectively companies manage vehicle maintenance, remote assistance, charging, passenger support, insurance, local coordination, and emergency procedures.

For Carziqo, Phoenix will serve as an operational test of how these individual components can function as a single mobility network.

Potential benefits for urban transportation

Driverless ride-hailing services are being developed as a potential complement to conventional taxis, private vehicles, and public transportation.

When deployed effectively, autonomous fleets may provide additional transportation options for people who cannot drive, reduce dependence on privately owned vehicles, and extend mobility services beyond the operating schedules of traditional transportation providers.

Phoenix Sky Harbor International Airport has previously described autonomous vehicle access as part of the region’s evolving transportation system, demonstrating how driverless services may eventually support connections between airports, business districts, residential communities, and other high-demand destinations.

However, the broader public value of autonomous ride-hailing will depend on affordability, accessibility, service coverage, safety performance, and the ability of operators to work effectively with local communities.

Carziqo said it will evaluate passenger demand and operating performance before determining the next phase of its Phoenix deployment.

A strategic step in Carziqo’s US expansion

The Phoenix launch forms part of Carziqo’s broader effort to establish an autonomous mobility network in major US markets.

The company describes its strategy as a combination of autonomous driving technology, intelligent dispatching, connected fleet management, and localized operations. Instead of relying solely on vehicle production, Carziqo is seeking to build a platform capable of managing the full operating cycle of driverless mobility services.

Harrington said Phoenix will play an important role in that strategy.

“The future of mobility will not be defined by autonomous vehicles alone,” he said. “It will be defined by how intelligently those vehicles are operated, how responsibly services are expanded, and how effectively technology responds to the needs of passengers and cities.”

As autonomous ride-hailing competition intensifies, Carziqo’s entry into Phoenix will test whether the ER-MX platform can establish a reliable position in one of the most closely watched driverless transportation markets in the world.

The company said additional information regarding service access, operating coverage, and fleet expansion will be released as the Phoenix operation progresses.

ALECO privatization should be last resort, not first option

 

 The Albay Electric Cooperative is once again at the center of a high-stakes debate about its future. Albay Governor Noel Rosal has raised the alarm over ALECO's reported debt burden, reportedly reaching P5.7 billion, and has opened the door to privatization as the definitive answer to the province's lingering energy crisis. The proposal deserves serious scrutiny. So does the history behind it.

By Partners for Affordable and Reliable Energy (PARE)

Albay has been here before.

A struggling electric cooperative. Mounting debts. Frustrated consumers enduring daily brownouts. Officials pointing to private sector participation as the only way out. And the public left wondering whether this time will be different.

PARE is cautioning that it may not be different now.

The Albay Electric Cooperative is once again at the center of a high-stakes debate about its future. Albay Governor Noel Rosal has raised the alarm over ALECO's reported debt burden, reportedly reaching P5.7 billion, and has opened the door to privatization as the definitive answer to the province's lingering energy crisis. The proposal deserves serious scrutiny. So does the history behind it.

"The question before the people of Albay is not simply who will run their electric cooperative. The deeper question is whether Albayanos will once again be asked to pay for a crisis they did not create," PARE said.

History Already Answered This Question

In 2014, ALECO entered into a concession agreement with the Albay Power and Energy Corporation, a subsidiary of San Miguel Corporation. The transition to private management was backed by Albay's top officials and sold to the public as the solution to the cooperative's chronic problems.

Eight years later, ALECO's Member-Consumer-Owners voted unanimously to terminate that agreement.

Under APEC, system losses reportedly ballooned to an all-time high of 40 percent. Collection efficiency collapsed to below 50 percent. Electricity rates reached P18 per kilowatt-hour. Debts continued to grow despite the promise that private management would resolve them. NEA audit findings confirmed that APEC had failed to satisfy the majority of its major requirements and deliverables under the concession agreement.

When NEA assumed management control in late 2022, consumers' bills reportedly dropped from P18 to P13 per kilowatt-hour almost immediately.

This is not ancient history. This is the last chapter.

"Privatization did not solve the problem the first time. Consumers were the ones who paid the price. Before anyone rushes to that conclusion again, every available reform measure must first be exhausted," PARE said.

P1.2 Billion in Public Money Is Already at Work

What makes the current privatization push particularly troubling is its timing.

The national government, through the initiative of Ako Bicol Party-list Representative Alfredo Garbin Jr., has committed over P1.2 billion to rebuild ALECO's infrastructure from the ground up. The Salvacion Substation was energized in May 2025, boosting demand capacity and stabilizing voltage for consumers in Sto. Domingo, Bacacay, and San Miguel Island. Two additional substations in Daraga and Ligao are targeted for completion by August 2026. An additional P800 million in line enhancements and new substations is rolling out across Legazpi City and the entire province this year.

Congressman Garbin has raised a critical point that consumers deserve to hear. Private entities are reportedly expressing interest in ALECO precisely because the national government has already absorbed the enormous upfront cost of building new infrastructure. Privatizing now would hand a taxpayer-funded asset to a corporation without any binding guarantee that old debts will be absorbed rather than quietly passed on to consumers through higher electricity rates.

"This is a shared accountability issue. The rehabilitation program is funded by the Filipino people. If privatization proceeds before this program is completed and independently assessed, consumers deserve to know who benefits and who pays," PARE said.

ALECO General Manager Engr. Wilfredo Bucsit has also reported that under current management, the cooperative has already paid down more than P129 million of its total obligations. The brownouts consumers experience today are reportedly tied to ongoing construction work that cannot safely be performed on live lines. These are facts that deserve honest public communication.

The Right Question Is Governance, Not Ownership

ALECO's crisis did not emerge overnight. It accumulated over many years through governance failures, management decisions, regulatory interventions, and inadequate oversight from NEA, DOE, and ERC. Accountability for the cooperative's condition does not rest with one institution alone. It extends to every body that exercised authority over its operations.

This is precisely why privatization is not a shortcut to accountability. It is often an escape from it.

"The more urgent question is not who will own ALECO but how it will be governed. Rehabilitation must strengthen cooperative governance, restore financial discipline, promote transparency, and ensure meaningful participation by Member-Consumer-Owners and stakeholders," PARE said.

Privatization does not automatically erase debt. It does not restore democratic governance. And as Albay's own experience has demonstrated, it does not guarantee better public service.

Exhaust Every Remedy First

Before privatization is placed on the table, PARE calls on DOE, NEA, ERC, and Congress to complete and independently assess the rehabilitation program, implement genuine governance reforms, strengthen consumer participation, and ensure full transparency at every stage.

If after all these measures are genuinely exhausted the cooperative still cannot deliver for Albayanos, then broader options may be considered. But consumers must be at the center of that decision. Not corporations. Not politicians. Consumers.

ALECO belongs to the people of Albay. Its future must serve them.

"Consumers pay for every inefficiency, every outage, and every pass-on charge in the system. They deserve accountability, transparency, and a meaningful voice in shaping the future of the institution that rightfully belongs to them," PARE said.

Rehabilitation with accountability and genuine consumer participation is the path forward. Privatization must be the last resort. Not the first instinct.

***

Partners for Affordable and Reliable Energy (PARE) is a national, independent consumer coalition advocating for affordable electricity, reliable service, energy justice, and meaningful consumer participation in the Philippine energy sector.

Nic Satur Jr09271448048nsaturjr.pare@gmail.com

The Electric Cooperative Reform the Philippines Can No Longer Ignore By Partners for Affordable and Reliable Energy (PARE)

On July 6, 2026, the people of Palawan did not wait for a congressional hearing or a regulatory investigation. They went outside and made themselves heard.

Member-Consumer-Owners of the Palawan Electric Cooperative gathered in front of PALECO's offices to deliver a message that no performance scorecard had managed to capture. They were not asking for the impossible. They were asking for what every Filipino household deserves: electricity that is affordable, reliable, and built to last.

It was a peaceful rally. But behind it was years of accumulated frustration.

Triple-A on Paper. Brownouts at Home.

In May 2026, PALECO achieved the highest performance rating for electric cooperatives in the country. Based on NEA's 2025 Annual Overall Performance Assessment, the cooperative was awarded an AAA distinction, scoring 97 percent. The cooperative's management celebrated. The mood in El Nido, Puerto Princesa, and Narra was considerably different.

John, a small business owner in Puerto Princesa, put it plainly. "We are paying premium rates. What we are not getting is premium service. The lights go out in the morning, come back, then go out again by afternoon. That is not Triple-A. That is triple the frustration."

According to MCO Tony Cabrestante a phrase now quietly circulating among PALECO's Member-Consumer-Owners. AAA, some consumers now say with a tired laugh, no longer stands for excellent performance. It stands for "Araw-Araw, Ara Kuryente." Every day, no electricity.

The joke draws a knowing smile. The reality behind it deserves a serious response.

Lisa, a small transient house owner in El Nido who depends on steady electricity to serve the tourists visiting one of the country's most celebrated destinations, shared her frustration quietly. "Guests are patient. I try to be patient. But after years of the same thing, patience runs thin. The lights should not be going out this often in a place like this."

What the Rating System Is Not Measuring

Nic Satur Jr., chief advocate officer of PARE, said the gap between PALECO's AAA classification and the daily experience of its consumers points to a deeper flaw in how electric cooperative performance is currently evaluated.

"Consumers are not looking at scorecards. They are looking at their electric fans, their refrigerators, their children doing homework at night. The rating system must be reformed to reflect what consumers actually experience, not just what institutions report about themselves," Satur said.

He added that questions have been raised about the credibility of a rating system where the same agency overseeing an intervention also evaluates its results. Those questions deserve transparent, public answers from NEA.

PARE has formally urged NEA to incorporate direct consumer feedback into its evaluation framework, including customer satisfaction data, complaint resolution rates, and power restoration performance during calamities and emergency situations.

"The ultimate measure of performance is a simple question every member-consumer-owner asks every morning: will the lights stay on today? Until that question has a reliable answer, a Triple-A rating is not a milestone. It is a gap that needs to be explained," Satur said.

PALECO Is Not an Isolated Case

The frustration in Palawan is real. But it is not unique. Across the country, consumers in cooperative franchise areas are living versions of the same story.

In Catanduanes, the First Catanduanes Electric Cooperative, or FICELCO, has been managing a power supply crisis that pushed daily brownouts to as many as eight hours for its over 62,000 Member-Consumer-Owners earlier this year. A combination of generator failures, unsettled subsidy obligations involving its power supplier, and a stalled competitive selection process for a new supplier left consumers on an island with no reliable timeline for relief.

In Albay, the struggles of the Albay Electric Cooperative, or ALECO, have become a flashpoint for a national debate on whether struggling cooperatives should be reformed or privatized. A P1.2 billion government rehabilitation program is currently underway, yet the specter of premature privatization continues to hang over a cooperative still finding its footing.

In Batangas, consumers of the Batangas Electric Cooperative, or BATELEC, have been enduring recurring outages that prompted a provincial government intervention and a public debate about private sector participation. A recent survey found that an overwhelming majority of consumers in the area experienced multiple outages per month.

In Zamboanga, the Zamboanga City Electric Cooperative, or ZAMCELCO, has faced its own rotational brownout episodes driven by supply and infrastructure challenges. In the Visayas, BISELCO consumers have similarly raised concerns that the service they receive does not match what they pay for every month.

"PALECO is one face of a national problem. Consumers from Catanduanes to Zamboanga are asking the same questions, enduring the same disruptions, and paying rates that do not reflect the service they actually receive," Satur said.

"This is not a cooperative-by-cooperative issue. This is a systemic failure in governance, oversight, regulation, and accountability that demands a national response."

What Consumers Are Asking For

The MCOs who gathered in front of PALECO on July 6 were not demanding the extraordinary. They were asking for the basic.

Affordable rates that reflect prudent and efficient management. Reliable service that does not interrupt livelihoods, education, and community life. Transparent governance that places Member-Consumer-Owners at the center of every major decision. And accountability from PALECO, FICELCO, ALECO, BATELEC, ZAMCELCO, BISELCO, and every cooperative in between, as well as from NEA, DOE, and ERC, for the state of the service consumers are paying for every single month.

"Consumers fund the entire system. They deserve a system that works for them, not one that works around them. That is the reform PARE is calling for. Not just in Palawan. Nationwide," Satur said.

The lights should not be going out this often. Not in Palawan. Not in Catanduanes. Not anywhere in this country.

That is not too much to ask.

***

Partners for Affordable and Reliable Energy (PARE) is a national, independent consumer coalition advocating for affordable electricity, reliable service, energy justice, and meaningful consumer participation in the Philippine energy sector.

Nic Satur Jr09271448048nsaturjr.pare@gmail.com

About Partners for Affordable & Reliable Energy
Partners for Affordable and Reliable Energy (PARE) is a national, independent consumer coalition advocating for affordable electricity, reliable service, energy justice, and meaningful consumer participation in the Philippine energy sector.