Business leaders, consumers demand solutions to Visayas power crisis at Cebu summit
CEBU, Philippines – Business leaders, civic society groups, and concerned citizens on Monday, October 12, called on government officials for better transparency and reliable long-term solutions amid the Visayas power crisis.
They made the call at the Cebu Energy Summit held after months of power interruptions and outages due to an unavailability of supply from the region’s power plants. The National Grid Corporation of the Philippines (NGCP) disclosed in a September situation report that more than 1,500 megawatts were unavailable due to forced plant outages and reduced operating capacities even with imports from Luzon.
Bernard Sia, Cebu Chamber of Commerce and Industry (CCCI) vice president for Cebu Business Mobilization, shared during the summit that many industries in the province are unable to shift to backup power when a power interruption occurs.
“For construction, [CCCI] members told us that interruptions affect electrically powered equipment, pumps, lighting, site offices and other activities, which can mean work stoppages, lower productivity, and delays,” Sia said.
Sia added that the repeated interruptions have drawn concern from domestic and international clients about Cebu’s capability to support business needs, possibly affecting future transactions and partnerships.
On top of affected trade, the CCCI reported that businesses, especially small and medium enterprises, have been forced to absorb additional costs, ranging from generator and fuel procurements to repairs and equipment protection.
Asked about the business outlook for Cebu amid the power crisis, Sia told Rappler on the sidelines of the summit that some businesses may face closures next year.
“It’s not going to be a good picture, but, you know, as always, we just want to be able to make sure that all businesses survive,” he said.
The CCCI called on officials to provide better information on the schedule of the outages and stronger reliability from the grid through adequate power generation, sufficient energy reserves, and better distribution.
Cebu Governor Pamela Baricuatro highlighted these concerns in her speech during the summit.
“Every day, brownout means lost income for small businesses, disrupted work, or another difficult night for a family. For our hospitals and essential services, dependable electricity is critical to keeping people safe,” the governor said.
Department of Energy (DOE) and NGCP data showed that Cebu carries the largest share of the Visayas grid’s manual load dropping allocation — at 42%, based on the province’s demand share.
Manual load dropping or rotational power interruption happens when there is limited electricity supply or high demand from consumers. NGCP coordinates with electric cooperatives and distribution utilities to temporarily cut off electricity in non-critical sectors like households to maintain the grid’s reliability and prevent a system collapse.
Make consumer welfare a priority
Cebu Electricity Rights Advocates (CERA) lead convenor Nathaniel Chua said that consumer welfare should to be at the center of all future energy policy decisions.
“Cebuanos deserve electricity that is fair, affordable, reliable and dependable — not power that comes with unpredictable costs and recurring threats of supply shortages,” Chua said in a statement sent to Rappler.
In September, electricity rates through major distributors like Visayan Electric, which serves the major Cebu cities, were at P14.89 per kilowatt-hour for residential areas, a sharp increase from P12.79 per kilowatt-hour in January.
CERA urged government officials to ensure that electricity bills are affordable and reflect transparent, long-term power contracts and reasonable costs, rather than Wholesale Electricity Spot Market (WESM) price spikes or unexplained and unannounced pass-through charges.
Chua said that Cebu’s energy problem can be addressed with more supply as a long-term solution through more diversified energy projects and sufficient ancillary services and reserve power.
“For the short term, we need to improve our NGCP lines so that we can immediately import power from Luzon,” Chua added.
Teody Navea, secretary of Sanlakas Cebu, echoed CERA’s demands, urging the Cebu provincial government to take a people-centered approach amid the Super El Niño phenomenon.
Navea warned that the vulnerability of the Visayas grid would invite proposals for coal plants, despite the moratorium on new coal-fired power plants since 2020. The moratorium, however, does not prevent coal power proponents from applying for non-coverage.
“To look at coal as a viable baseload solution during extreme weather events is not just short-sighted but a dangerous step backward. Coal is not the remedy for our grid instability — coal is precisely the problem,” Navea said.
Sanlakas Cebu called on officials to seek greener power generation and affordable renewable energy sources. – Rappler.com
