The Mandaue Chamber of Commerce and Industry (MCCI) and the Talisay Chamber of Commerce and Industry (TCCI) said the power supply situation, which has persisted for more than a month, requires immediate action.
Without decisive intervention, the chambers said unreliable power could increase business expenses, push up the prices of goods and services, dampen productivity, and make Cebu less attractive to investors.
Visayan Electric Co., the country's second-largest electric distribution utility, earlier announced a rate increase for June, citing higher generation charges caused by tight supply conditions in the Visayas grid. Elevated electricity demand and limited operating reserves triggered several yellow and red alert declarations in May.
The Visayas grid has experienced recurring yellow and red alerts since May 12 due to forced outages at several power plants.
Still under yellow alert
As of June 24, National Grid Corp. of the Philippines (NGCP) again placed the Visayas grid under yellow alert after available reserves fell to 183 megawatts (MW). Available capacity stood at 2,542 MW against a demand of 2,362 MW.
Visayan Electric also announced on Facebook that it would implement one-hour rotational brownouts in parts of Cebu and Mandaue cities, as well as the towns of Liloan and Consolacion, if the grid status escalates to a red alert, to help maintain overall grid stability.
Higher costs, weaker competitiveness
In a statement, the MCCI said frequent power disruptions threaten the safe operation of factory equipment and production facilities while reducing productivity, increasing operating costs, and undermining the competitiveness of businesses, particularly in Mandaue, a major industrial and manufacturing hub in Cebu and the Southern Philippines.
The chamber backed calls for a congressional inquiry to determine the root causes of the recurring grid alerts and ensure accountability among stakeholders in the power sector.
"If these power supply issues persist, they could contribute to higher prices of goods and services, disrupt supply chains, discourage investments, and ultimately affect employment generation and economic growth in the region," the MCCI said.
The chamber also called for closer coordination among the Department of Energy (DOE), the Energy Regulatory Commission (ERC), and the NGCP in implementing the Transmission Development Plan.
To accelerate the development of new power generation capacity, MCCI urged the government to streamline the processing of permits and licenses for power projects while encouraging investments in diverse energy sources to strengthen the Visayas power supply and ensure adequate reserves.
"Reliable and affordable power is essential to sustaining business growth, attracting investments, and ensuring the continued economic development of Cebu and the entire Visayas region," the chamber said.
'National priority'
TCCI president Carl Cabusas echoed MCCI's concerns, saying ensuring a reliable power supply for Cebu should be a national priority, given that the island hosts the country's largest economy outside Metro Manila and remains one of the Philippines' key growth engines.
"Businesses can adapt, but there is a cost. Investors and expanding companies now have to factor in additional expenses such as backup generators, solar power systems, battery storage, and other mitigation measures to protect their operations from power interruptions. These added costs affect competitiveness and may influence future investment decisions," Cabusas said.
If left unresolved, he warned, power constraints could slow Cebu's economic momentum at a time when the province should be attracting more investments, creating jobs, and supporting micro, small, and medium enterprises (MSMEs) already grappling with inflation and rising operating costs.
"At this point, the focus should be on solutions. We already know the challenge before us: demand is growing faster than available power supply. Government and industry stakeholders should work together to accelerate power generation projects, strengthen transmission infrastructure, and ensure adequate capacity for the future," he said.
Cabusas added that resolving the power situation promptly would benefit not only Cebu but the country as a whole, stressing that energy security is fundamental to sustained economic growth, investor confidence, and long-term competitiveness. —Ed: Corrie S. Narisma
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