Biz leaders demand long-term fix to Cebu power woes

Local

CEBU’S recurring power interruptions are already disrupting business operations and could eventually push up prices of goods and services, prompting business leaders to demand a long-term fix to the province’s worsening power situation.

Mark Anthony Ynoc, immediate past president of the Mandaue Chamber of Commerce and Industry (MCCI), said rotational brownouts are taking a toll on businesses, particularly in Mandaue City, one of the region’s major industrial centers.

Manufacturers face disruptions to production and equipment, while businesses that use generators during outages have to shoulder additional fuel and operating costs.

“Anything you do with power, anything you do with fuel … that affects the supply chain increases the consumer cost,” Ynoc said after the Cebu Economic Forum on Thursday, Sept. 8.

Ynoc said higher power and fuel expenses could add to inflationary pressures already confronting businesses and consumers, particularly amid a possible wage increase and uncertainties from the continuing conflict in the Middle East.

Businesses seek long-term solution

Ynoc said Cebu cannot rely on short-term measures to address the power crisis.

He urged the Department of Energy (DOE), Energy Regulatory Commission (ERC) and National Grid Corporation of the Philippines (NGCP) to work more closely on a comprehensive plan covering power generation, transmission and distribution.

“We need to see the transmission development plan at full display,” Ynoc said.

He pointed out that building additional power plants would not be enough if the grid does not have sufficient transmission capacity to deliver electricity to areas that need it.

Cebu Chamber of Commerce and Industry (CCCI) President Regan Rex King also stressed that reliable electricity is critical to Cebu’s bid to attract more investments.

“We need power stability,” King said.

He said the provincial government is expected to convene government agencies, local governments and private-sector stakeholders on Oct. 7 to discuss the power situation and possible solutions.

“If we all work together, the power can be resolved,” King said.

Businesses turn to solar

Businesses are already adjusting to the outages.

Some have modified operating hours based on announced brownout schedules, while others are investing in solar power systems.

King said demand for solar installations has increased, but stressed these remain temporary measures.

“The long-term solution is really for Cebu to add more base load here, stable power sources,” he said.

He also urged investors to consider putting up new generation facilities in Cebu to support the province’s growing economy.

About 450 megawatts of generating capacity are expected to return to service by October after maintenance, King said.

However, he cautioned that this may not completely eliminate power shortages.

Cebu continues to rely partly on the spot market for additional electricity, while other areas in the Visayas and Mindanao are also facing supply constraints.

The simultaneous maintenance of several plants has also exposed the need for better planning, King said. He hopes future maintenance schedules can be staggered to prevent multiple facilities from being unavailable at the same time.

King warned that higher electricity and operating expenses could eventually be passed on to consumers, adding to inflationary pressures.

For Cebu to remain an attractive investment destination, he said, the province must ensure that its power supply and infrastructure can keep pace with the investments it wants to bring in.

The private sector, he added, needs stronger support from local and provincial governments in raising Cebu’s concerns with national authorities.(MyTVCebu)