Power crunch worries Cebu business groups

CEBU CITY — Business leaders in Cebu have expressed concern over the recurring yellow alerts in the Visayas grid, warning that persistent power supply issues could undermine investor confidence in the region and hamper economic growth.

The Cebu Chamber of Commerce and Industry (CCCI), Mandaue Chamber of Commerce and Industry (MCCI), and Talisay Chamber of Commerce and Industry (TCCI) issued separate statements calling for collective action to ensure energy stability and reliability in the region.

 “This situation should serve as a wake-up call and a call to action for all stakeholders — government, energy providers, the private sector, and consumers — to work together with urgency in strengthening our energy security, accelerating investments in additional power generation, modernizing transmission infrastructure, improving energy efficiency, and expanding renewable and sustainable energy solutions,” said Regan Rex King, CCCI president.

Call for long-term solutions 


Bambi Gothong, president of the Mandaue Chamber of Commerce and Industry (MCCI), said the recurring yellow alerts highlight the need for stronger long-term energy planning, more aggressive investments in power generation, and improvements in transmission infrastructure.

For his part, TCCI president Carl Cabusas said they hoped the Department of Energy (DOE), National Grid Corporation of the Philippines (NGCP), and distribution utilities could immediately stabilize the grid and minimize prolonged disruptions.

“At the same time, this also reinforces the importance of long-term energy resiliency measures, including investments in grid modernization, renewable energy, and practical backup solutions for businesses and communities,” he said.

Red and yellow

The Visayas has been on red and yellow alert status as available power supply could not keep pace with demand, especially during peak hours.

A red alert status is issued when power supply is insufficient to meet consumer demand and the transmission grid’s regulating requirements. A yellow alert is declared when the operating margin falls below the transmission grid’s contingency requirement.

The Visayas grid has been under a cycle of power alerts for the past several days, starting on May 12, when peak demand reached 2,512 megawatts (MW) as against the capacity of 2,684 MW.

It was upgraded to red alert on certain hours on May 13 when power capacity could barely support peak demand.

In a statement on May 14, NGCP said it was implementing manual load drop or intentional or controlled shutdown of electricity in 32 areas in the Visayas including Cebu and Iloilo, which are considered business hubs in the region.

Red alert was up from 3 p.m. to 10 p.m. and yellow alert from 10 p.m. to 11 p.m. as peak power demand was at 2,552 megawatts (MW), more than the available capacity of  2,377MW.

The NGCP said a total of 902.7 megawatts (MW) had been unavailable to the grid due to the forced outage of 22 power plants — 12 of which have been offline since early this month, one since March, four since 2025, two since 2024, two since 2023, and one since 2021.

An additional 13 power plants were operating at reduced or derated capacities.

Cause for concern

However, the recurring alerts have become a cause for concern among the business community, as even brief power disruptions can lead to operational setbacks, productivity losses, higher operating costs, and reduced competitiveness.

“If these grid alerts become frequent and prolonged, there is a real risk that some investors may begin to question the long-term reliability and resiliency of the region’s energy infrastructure,” said King in a statement. 

He called on stakeholders -- government, energy providers, the private sector, and consumers — to work together in strengthening energy security, accelerating investments in additional power generation, modernizing transmission infrastructure, improving energy efficiency, and expanding renewable and sustainable energy solutions.

He also urged the business community to take proactive steps to minimize the impact of power disruptions by investing in energy efficiency measures, backup systems, and solar and other renewable energy solutions, among others. 

“Even simple actions such as optimizing operating hours, upgrading to energy-efficient equipment, and improving conservation practices can collectively make a significant impact,” said King.

Priority

King said the CCCI is ready to work with government agencies, power providers, and industry stakeholders in pursuing sustainable and practical solutions that would ensure a more reliable, affordable, and competitive energy future for Cebu and the rest of the Visayas. 

For her part, Gothong said strengthening energy security should be a national priority if the country wants to remain competitive in attracting future investments, especially as neighboring Asian economies already offer more reliable and lower-cost energy infrastructure. 

“Recurring grid alerts and high energy costs could discourage investments in high-value industries such as data centers, electric vehicle assembly, and semiconductor manufacturing,” she said. —Ed: Corrie S. Narisma

About the author
Connie Fernandez-Brojan
Connie Fernandez-Brojan

Contributor

Featured News
Explore the latest news from InsiderPH
Friday, 15 May 2026
Insight to the one percent
© 2024 InsiderPH, All Rights Reserved.