Biz group urges gov’t to address unstable power supply

Local

FOR businesses in Cebu, keeping the lights on is becoming as important as keeping costs down.

The Cebu Chamber of Commerce and Industry (CCCI) is urging government and energy stakeholders to take urgent action to improve power reliability and control electricity costs, warning that unstable supply can affect business operations, investment decisions and job creation.

CCCI president Regan King said businesses cannot build a competitive economy if they cannot depend on the electricity needed to operate.

“The business sector cannot build a more competitive Cebu economy on an unreliable power supply,” King said.

The chamber said the concern goes beyond occasional power interruptions, as businesses also have to deal with electricity rates that can be difficult to predict.

For companies, particularly micro, small and medium enterprises (MSMEs), unexpected interruptions can mean lost operating hours, disrupted transactions, spoiled products and additional expenses for backup power.

Higher electricity rates can also increase production and operating costs, leaving businesses with fewer resources for expansion, hiring and other investments.

CCCI said MSMEs, workers and families should not simply be expected to absorb the costs arising from power supply problems beyond their control.

The concern comes as Central Visayas continues to expand its economy.

The region generated about P1.32 trillion in economic output in 2025, making it the largest regional economy outside Metro Manila, while recording a 3.7 percent growth rate, according to government data.

CCCI said the region’s economic performance highlights the need for infrastructure that can keep pace with business activity and growing electricity demand.

The Philippines recorded an average electricity rate of P12.43 per kilowatt-hour in June, the highest in Asean based on figures cited in the report.

In the Visayas, tight reserves, supply constraints and forced outages have added pressure to the power system.

For businesses, the chamber said the issue is not simply whether electricity is expensive but whether its cost and availability can be reliably anticipated.

Predictability allows businesses to plan production schedules, manage equipment, protect inventories and determine whether investments are financially viable.

Unplanned or prolonged interruptions can be particularly disruptive to businesses that depend on continuous electricity, including manufacturing, food establishments, retail, offices and other service-oriented enterprises.

CCCI is calling for coordinated action from the

government, energy companies and other stakeholders to strengthen the Visayas power system and improve the stability of electricity costs.

The region is already seeing investments intended to improve power availability and flexibility.

AboitizPower has a 60-megawatt battery energy storage system in Naga City, while Meralco PowerGen Corp. has energized the first phase of its battery storage project in Toledo.

Renewable energy capacity is also expanding across the Visayas.

Department of Energy data as of May 2026, cited by the Philippine Information Agency, showed 2,179.47 megawatts of committed renewable energy capacity in the region from biomass, geothermal, hydro, solar and wind projects.

The region also had 419.9 MW of committed energy storage capacity, including battery and hybrid facilities.

Transmission infrastructure is being developed alongside new generation capacity.

The National Grid Corp. of the Philippines is developing the Cebu-Lapu-Lapu 230-kilovolt transmission line and Lapu-Lapu 230-kV substation to support demand in Metro Cebu and Mactan Island and accommodate additional renewable energy capacity.

But CCCI said adding more generating capacity alone will not resolve the power sector’s challenges.

The chamber also pointed to the need to improve the efficiency of transmission and distribution networks, particularly amid discussions on system-loss charges.

Calls have been made to amend the Electric Power Industry Reform Act and remove system-loss charges from consumer electricity bills.

Energy Secretary Sharon Garin said the government needs to balance consumer protection with the need to maintain the reliability and long-term sustainability of the power sector.

“Consumer protection and energy security must always go hand in hand,” Garin said.

The Department of Energy has formed a task force with the Energy Regulatory Commission, National Electrification Administration and electric cooperatives to develop policies on the possible removal of system-loss charges and the corresponding value-added tax on electricity bills.

However, changing how system losses are charged to consumers would not eliminate the actual electricity lost within transmission and distribution networks.

CCCI said reducing avoidable losses would require investments in power lines, substations, transformers, metering, monitoring and network management.

The chamber said the country’s energy transition should therefore combine renewable generation, battery storage, dependable capacity, transmission investments and more efficient distribution.

For Cebu, CCCI said reliable and competitively priced electricity is essential to sustaining investment and economic growth.

The chamber said it was prepared to work with the government, the energy industry and other stakeholders to pursue practical measures that would improve power reliability and affordability.

Meanwhile, the Mandaue City Council is asking power distributors to strictly follow published rotational interruption schedules and minimize outages beyond announced periods.

Councilor Jennifer S. Del Mar filed Draft Resolution No. 559-2026 during the Sangguniang Panlungsod regular session on Sept. 14, citing the need for consumers to make timely adjustments amid recurring interruptions caused by generation capacity shortages in the Visayas Grid.

Del Mar said predictable schedules are important to households, students, businesses, remote workers and healthcare facilities, allowing them to adjust operations, protect equipment and goods, and plan around interruptions.

The proposed resolution calls on power distributors to adhere to announced schedules and minimize disruption times to help consumers avoid financial, operational and logistical losses.(MyTVCebu)