Power crunch forces Cebu firms to alter work hours, tap generators

CEBU CITY, Philippines — Businesses in Cebu are adjusting work hours, running costly generator sets and increasingly turning to solar power as months of rotational brownouts continue to disrupt operations and drive up costs.

Business groups here are frustrated with the prolonged power problems and warned that it is beginning to weigh on manufacturing and other industries.

This problem could trickle down to consumers through higher prices, the business groups warned.

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READ: Cebu power crisis hits remote workers, businesses

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Cebu Chamber of Commerce and Industry (CCCI) President Regan Rex King said some companies have shortened or rearranged working hours depending on scheduled rotational brownouts.

“Some of the businesses are already, for example, shortening work time, especially when there is a rotational brownout schedule,” King said in a statement on Thursday (Sept. 10).

Other firms are investing in alternative power sources.

“I’m seeing a spike in demand for solar to address the issue,” he added.

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But the head of CCCI, the largest business-oriented organization outside of Metro Manila, stressed that solar and other measures taken individually by businesses provide only short-term relief. 

Cebu ultimately needs additional dependable baseload generation to support its growing economy, he pointed out.

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The outages have been particularly disruptive for Cebu’s manufacturing sector, according to Mark Anthony Ynoc, immediate past president of the Mandaue Chamber of Commerce and Industry (MCCI).

Mandaue City is one of Cebu’s major industrial centers, making businesses there particularly vulnerable to unstable electricity supply.

“These rotational brownouts are affecting a lot of our equipment, our manufacturing equipment,” Ynoc said.

Companies that switch to generator sets during outages also incur additional fuel and operating expenses, he said.

READ: CERA to DOE: Fast-track new power projects in Visayas grid

Those additional costs could eventually be passed on to consumers.

“Anything you do with power, anything you do with fuel, anything that affects the supply chain increases consumer cost,” Ynoc explained.

The CCCI and MCCI made the statements as Cebu province hosted the 4th Cebu Economic Forum.

Both chambers also warned that should the power crisis remain unaddressed, it would definitely hurt investors’ confidence.

Since May, Cebu and the rest of the Visayas have been grappling with recurring generation shortages that have repeatedly pushed the regional grid into red and yellow alert status.

The Visayas grid had recorded at least 35 red-alert occurrences this year through Sept. 9, based on published advisories. 

READ: Amid Visayas rotational brownouts, House inquiry sought

A red alert is issued when both electricity supply and reserves are insufficient to meet consumer demand, increasing the likelihood of rotational brownouts.

King said restoring several large power plants could ease the immediate shortage, but warned that it would not solve the Visayas’ underlying supply problem.

Even with these plants operating again, Cebu needs additional generation capacity as demand grows and neighboring islands face their own supply constraints, he said.

For Ynoc, resolving the crisis requires more than building power plants. 

Generation, transmission and distribution infrastructure must expand together.

He also called for greater coordination among the Department of Energy, Energy Regulatory Commission and National Grid Corp. of the Philippines, particularly on long-term transmission development.

“We’re trying to avoid spending Christmas in the dark,” Ynoc said.

King said stable electricity would also be critical if Cebu wants to continue positioning itself as an investment destination.

READ: Cebu gov’t offices told to limit power use every Monday amid outages

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“With stable power, that means more opportunities for investors to come here,” he said. /coa