CEBU, PHILIPPINES — Business leaders in Cebu warned that recurring yellow alerts in the Visayas power grid are beginning to threaten investor confidence and raise operating costs, adding pressure on industries already grappling with inflation, weak global demand, and supply-chain uncertainties.
Executives from major business groups said unreliable electricity could weaken the region’s competitiveness as Cebu positions itself as a hub for manufacturing, tourism, business-process outsourcing, and emerging high-value industries such as data centers and semiconductor assembly.
“The recurring yellow alerts in the Visayas grid are a growing concern for the business community because reliable and affordable power are among the foundations of economic growth, investor confidence, and job creation,” said Regan King, president of the Cebu Chamber of Commerce and Industry.
King said even brief periods of power instability could disrupt factory operations, slow productivity, and increase expenses for exporters, retailers, hospitals, and micro, small, and medium enterprises.
With electricity rates in the Philippines remaining among the highest in Southeast Asia, businesses are already struggling with elevated fuel costs and tighter margins.
King warned that repeated grid alerts could eventually force investors to reconsider expansion plans in the Visayas, where infrastructure reliability has become a crucial factor alongside labor supply and market access.
“Power security is now a key investment consideration,” he said.
Barbara Gothong-Tan, president of the Mandaue Chamber of Commerce and Industry, said electricity accounts for up to 40 percent of operating costs for some factories, making manufacturers highly vulnerable to outages and price spikes.
“Higher power rates and recurring outages significantly affect productivity, increase the cost of consumer goods, disrupt operations, and may even damage sensitive equipment and manufacturing facilities,” Gothong-Tan said.
She added that unstable electricity supply could weaken Cebu’s ability to attract investments in fast-growing sectors such as data centers, electric vehicle assembly, and semiconductor manufacturing, all of which require uninterrupted power and competitive energy pricing.
Neighboring Asian economies with more stable energy infrastructure could gain an edge if the Philippines fails to modernize its grid, she said.
Carl Cabusas, president of the Talisay Chamber of Commerce, said smaller enterprises are particularly vulnerable because power interruptions affect logistics, refrigeration, internet connectivity, and customer service operations.
“Energy resilience must now become part of business resilience,” Cabusas said, urging firms to invest in solar energy, backup systems, and contingency planning.
Business leaders, however, said they could not yet quantify the daily revenue losses caused by rotational brownouts that Cebu has experienced in recent days. When pressed to give a rough estimate, one business executive told The Freeman that it is “very difficult to speculate that can cause unnecessary panic in business community.”
The groups called on the Department of Energy (DOE), the National Grid Corp. of the Philippines (NGCP), and distribution utilities to accelerate investments in additional generation capacity, transmission upgrades, renewable energy projects, and grid modernization to prevent prolonged supply risks from constraining economic growth in the Visayas.
As of Tuesday, the Visayas grid remained under yellow alert due to tight operating reserves and reduced available generating capacity from 4 pm to 9 pm.
Grid monitoring data showed available capacity at 2,674 megawatts (MW), while peak demand reached 2,473 MW, leaving only a thin reserve margin during the afternoon and evening peak periods.
The NGCP reported that several power plants remain unavailable, including nine units on forced outage since May, one since March, three since 2025, two since 2024, two since 2023, and one since 2021. Another 15 plants are operating on derated capacity, bringing total unavailable capacity to about 847 MW.
Among the major plants still unavailable are TVI Units 1 and 2 and PEDC Unit 3. The NGCP also cited an additional 95-MW increase in forecast demand as a factor in extending the yellow alert.
A yellow alert is declared when operating reserves fall below the required contingency level, indicating that the grid may not have enough reserves to cover sudden outages or unexpected spikes in demand.
DOE Undersecretary Patrick Aquino said the agency is targeting a 10- to 20-percent reduction in energy consumption through conservation and efficiency programs aimed at easing pressure on the grid.
Aquino said the DOE is coordinating with large power users to tap “deloading” capacities through voluntary reductions in electricity use or participation in the Interruptible Load Program, which allows establishments to switch to backup power during peak demand periods.
The agency is also encouraging consumers and businesses with available rooftop space to install solar energy systems as part of efforts to decentralize power generation and improve energy efficiency.
Aquino added that the DOE continues to conduct energy audits in government buildings to identify areas where electricity and fuel consumption can be reduced, in line with Executive Order No. 110 on energy efficiency and conservation.
The DOE also reported growing participation from malls, property developers, and other private sector groups in its “Oras Natin sa Efficiency” campaign, which promotes energy-saving habits during peak demand hours.
Under the campaign, households and businesses are encouraged every Saturday from 8 p.m. to 9 p.m. to switch off unnecessary lights and unplug unused appliances to help reduce electricity consumption.
The DOE likewise reminded consumers to adopt energy-efficient practices during the warm season, including setting air-conditioning units at 24 to 25 degrees Celsius, regularly cleaning filters, and unplugging appliances when not in use.
| Written by Ehda M. Dagooc and Mitchelle L. Palaubsanon/FPL
