ILOILO City – Iloilo’s business community has sounded the alarm over recurring power interruptions, manual load dropping (MLD) and rising electricity costs, warning that the continuing Visayas power shortage is threatening business productivity, employment, investments and the region’s economic growth.
The Philippine Chamber of Commerce and Industry – Iloilo Chapter (PCCI-Iloilo) and the Filipino-Chinese Chamber of Commerce of Iloilo, Inc. (FCCCII) separately called for urgent government and power-sector intervention as supply problems continue to affect Iloilo, Panay Island and the wider Visayas.
PCCI-Iloilo, in a statement issued Thursday afternoon, Sept. 17, reiterated its demand for “urgent and decisive action” to address the continuing power crisis, particularly in Western Visayas and Iloilo.
“As we have consistently emphasized in our briefings, dialogues, and media interviews, reliable and reasonably priced electricity is not just an energy concern — it is an economic issue that directly affects businesses, industries, micro, small and medium enterprises (MSMEs), workers, and every household,” according to PCCI-Iloilo.
The group said “uncertain power availability, recurring MLD, and high electricity costs are placing increasing pressure on businesses, industries, and individual consumers. Reliable and reasonably priced electricity is fundamental economic infrastructure.”
Businesses, particularly MSMEs, are losing operating hours and productivity because of power interruptions while also facing damaged equipment, spoiled inventory, disrupted digital transactions and additional expenses for generators and backup systems.
Industries likewise face higher production costs that could affect their competitiveness and expansion plans as well as Iloilo and Panay Island’s attractiveness to potential investors.
Households are also bearing the impact as higher electricity costs eat into disposable income while recurring interruptions disrupt daily life.
PCCI-Iloilo identified three interconnected problems confronting the Visayas power sector – availability, reliability and cost.
It said recurring outages, shutdowns and derating of generating facilities expose the vulnerability of the Visayas power system whenever significant generating capacity becomes unavailable.
MLD, particularly when implemented with limited advance notice, also disrupts business operations and imposes costs ultimately borne by businesses, workers and consumers.
On electricity prices, PCCI-Iloilo stressed that businesses and households should not shoulder unreasonable costs arising from inefficiencies, inadequate planning or avoidable failures in the power system.
It said electricity rates must remain transparent, competitive and reflective of legitimate costs.
PCCI-Iloilo called for stronger power supply and grid reliability through adequate dependable generation, sufficient reserves, resilient transmission infrastructure and diversified energy sources for Panay and the Visayas.
It also urged the Department of Energy (DOE) and Energy Regulatory Commission (ERC) to strengthen monitoring of generation charges, market prices and other electricity cost components to protect consumers from unreasonable increases.
The chamber pushed for the review and implementation of a Panay Energy Master Plan that would establish clear short-, medium- and long-term strategies covering projected demand, generation requirements, renewable energy, storage, transmission, reserve requirements and energy security.
It also sought greater accountability from generating facilities experiencing recurring outages, prolonged shutdowns and deratings, including transparent government reviews and corrective measures where necessary.
PCCI-Iloilo urged the National Grid Corporation of the Philippines (NGCP) and distribution utilities to provide timely and accurate advisories and adopt a fair and strategic system for allocating loads during power shortages.
It also called on the government to expedite the Panay-Mindoro-Batangas interconnection to give Panay stronger access to electricity from the Luzon grid and improve system resilience.
The chamber proposed a Business Energy Resiliency Program that would assist MSMEs through soft financing, incentives and technical support for solar power, battery storage, energy-efficient equipment, backup power and other alternative energy solutions.
PCCI-Iloilo likewise proposed the establishment of a permanent multi-sectoral Panay/Iloilo Energy Council composed of representatives from the DOE, ERC, NGCP, distribution utilities, local governments, business sector, academe and civil society.
The council would monitor supply, demand, electricity rates, generation and transmission projects, MLD incidents and emerging risks.
“PCCI-Iloilo recognizes that the power crisis cannot be solved by one institution alone. Government, regulators, generators, NGCP, distribution utilities, businesses and consumers all have roles to play. What the business community asks is straightforward: adequate power, reliable power, fair power costs, transparency and accountability. Power security is economic security,” part of PCCI-Iloilo’s statement read.
FCCCII earlier raised similar concerns over recurring yellow and red alerts affecting the Visayas Grid and the resulting MLD and rotational power interruptions.
The group said businesses in Iloilo City are being forced to absorb additional operating expenses while suffering lost sales and declining productivity.
“Businesses must spend more on generators, fuel, overtime, equipment protection, and schedule adjustments while facing lost sales and reduced productivity. Small enterprises are especially vulnerable because many cannot afford backup power,” part of the FCCCII statement read.
The business group also pointed to increasing electricity prices, noting that Iloilo City’s average commercial electricity rate climbed from P13.04 per kilowatt-hour in June to P13.58 in August.
“Businesses are paying more for electricity while also carrying the cost of repeated Interruptions,” said FCCCII president Engr. Terence S. Uygongco. “This threatens productivity, employment, Investment, and consumer prices.”
FCCCII acknowledged that MLD may be necessary to prevent a wider grid failure but said its repeated implementation underscored the need for long-term solutions.
It called for the immediate restoration of unavailable generating units, timely and transparent outage advisories, stronger generation and transmission capacity, and measures to shield businesses and consumers from exceptional increases in electricity costs.
“Iloilo needs a clear recovery plan with firm timelines and accountable parties. Reliable and affordable electricity is essential to protecting local businesses, jobs, investments, and the city’s continued economic growth,” FCCCII added./PN
