Cebu condo developer hit for unpaid power bills worth millions of pesos

Homeowners claim they paid dues, but millions in power bills remain unsettled

CEBU CITY, Philippines — Hundreds of condominium homeowners were left in the dark after Visayan Electric Company (VECO) cut off power to three residential buildings due to alleged unpaid electricity bills amounting to millions of pesos.

The developer, Landtraders World Properties Corporation, is under scrutiny over accusations of financial mismanagement, as homeowners claim they have been diligently paying their dues.

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On February 25, affected residents sought intervention from the Cebu City government. This has prompted Mayor Raymond Alvin Garcia to order an investigation and urge VECO to implement individual meter installations for unit owners instead of the existing single-metering scheme.

Mass power cutoff

The power disconnection affected residents of San Marino Residences, Corinthians Residences, and Royal Garden Residences, some of whom sought the city’s help. Homeowners claim their payments were coursed through the condominium management, yet VECO records allegedly show millions in outstanding balances.

In San Marino Residences, unpaid electricity bills have reportedly reached P3.1 million, while Corinthians Residences has an outstanding balance of nearly P900,000. The power disconnection has affected over 392 units in San Marino and around 270 units in Corinthians, leaving hundreds of residents without electricity.

VECO revenue management head Juan Miguel Exaltacion confirmed that non-payment beyond the grace period warrants disconnection.

“We still need to verify the metering setup, but there is a process we follow in cases like this,” Exaltacion said.

Developer shifts blame, cites advance payments during Odette

Landtraders denied mismanagement, claiming it had advanced payments for utility bills even after homeowners had taken over building management. The company insisted it had shouldered electricity costs during the COVID-19 pandemic and Typhoon Odette when many homeowners failed to pay their dues.

“Landtraders World Properties Corporation went the extra mile by advancing payments for the developers’ bills of its unsold units. This assistance was provided to ensure uninterrupted operational services. However, as much as we want to continue offering this level of support, our diminishing inventory limits our ability to sustain these advances,” the company said in a statement.

They asserted that they had shouldered the burden to keep daily operations running smoothly. However, they emphasized that it was now time for the community to take responsibility, particularly in ensuring the timely payment of monthly dues and utility bills.

“When everyone fulfills this obligation, the entire community benefits from uninterrupted services and continuous improvements. However, if many fall behind, even the most diligent payers will feel the impact,” the statement added.

Homeowners, however, disputed this claim. They argued that management was quick to disconnect individual power lines over missed payments and even imposed penalties, yet the entire building’s electricity was allegedly cut off due to the developer’s failure to settle its own bills.

“Kung naay usa ka buwan nga wa ka kabayad, putlan dayon mi. Dili sad na tinuod nga dili mi kabayad tanan,” one homeowner said.

(If there is someone

City Hall intervenes, warns developer

Garcia has directed the Office of the Building Official (OBO) to review the affected buildings’ compliance. While acknowledging that condominiums are private entities, he emphasized that public welfare was at stake.

“It doesn’t anymore involve just your company; it involves the entire city of Cebu, and as Mayor, I have to step in,” Garcia said.

He warned Landtraders against defying City Hall and reminded them that their operations depend on business, building, and occupancy permits.

To ease the crisis, the mayor has appealed to VECO to restore power while homeowners apply for individual meters. However, this presents another hurdle, as VECO requires notarized proof of ownership, yet many homeowners only possess unsigned certificates from Landtraders.

Beyond unpaid bills

The controversy extends beyond electricity issues. A resident from Parthenon Residences, another Landtraders property, reported that security guards abandoned their posts due to unpaid wages, while garbage has been piling up in the parking area.

As the dispute escalates, Landtraders is set to hold a press conference at 1 p.m. today to address the allegations.