The price and reliability of electricity are emerging as critical factors in Cebu’s ability to attract investments, expand businesses and sustain jobs, as the region faces tight power reserves and supply constraints.
The Cebu Chamber of Commerce and Industry (CCCI) is urging the government, energy companies and other stakeholders to take coordinated action to strengthen the Visayas power system and make electricity costs more predictable.
CCCI president Regan King said businesses need a reliable power supply to remain competitive.
“The business sector cannot build a more competitive Cebu economy on an unreliable power supply,” King said.
The chamber said the impact is particularly significant for micro, small and medium enterprises (MSMEs), which may have less capacity to absorb higher operating costs or losses caused by unexpected power interruptions.
“MSMEs and the workers and families who depend on them cannot afford to simply absorb the cost of a problem they did not create,” CCCI said.
The concern comes as Central Visayas continues to be one of the country’s major economic centers.
The region generated about P1.32 trillion in economic output in 2025, making it the largest regional economy outside Metro Manila, while growing by 3.7 percent, according to government data.
CCCI said this growth makes dependable infrastructure increasingly important, particularly as businesses consider expansion and new investments.
The Philippines recorded an average electricity rate of P12.43 per kilowatt-hour in June, the highest in Asean based on figures cited in the report.
In the Visayas, tight reserves, supply constraints and forced outages have shown how supply problems can also translate into higher and less predictable electricity costs.
For businesses, CCCI said the concern goes beyond the rate reflected on their monthly bills.
Unstable electricity prices make it more difficult for companies to forecast expenses, while prolonged or unexpected interruptions can disrupt production, transactions, services and other operations.
Businesses that rely on refrigeration, machinery, information technology and other electricity-dependent equipment may also face additional costs when power interruptions occur.
The chamber said these conditions can squeeze operating margins, discourage expansion and make Cebu less competitive with areas offering more stable or affordable electricity.
Several projects are being pursued to improve the region’s power system.
AboitizPower has a 60-megawatt battery energy storage system in Naga City, while Meralco PowerGen Corp. has energized the first phase of its battery storage project in Toledo.
Renewable energy development is also expanding across the Visayas.
Department of Energy data as of May 2026, cited by the Philippine Information Agency, showed 2,179.47 MW of committed renewable energy capacity in the region from biomass, geothermal, hydro, solar and wind projects.
The region also had 419.9 MW of committed energy storage capacity, including battery and hybrid facilities.
Transmission investments are also being made to support rising demand.
The National Grid Corp. of the Philippines is developing the Cebu-Lapu-Lapu 230-kilovolt transmission line and Lapu-Lapu 230-kV substation to support demand in Metro Cebu and Mactan Island and accommodate additional renewable energy capacity.
But CCCI said additional generation should be matched with improvements in transmission and distribution efficiency.
The issue of system losses has also become part of the wider debate on electricity costs.
Calls have been made to amend the Electric Power Industry Reform Act and remove system-loss charges from consumer electricity bills.
Energy Secretary Sharon Garin said consumer protection must be balanced with the need to maintain the reliability and sustainability of the power sector.
“Consumer protection and energy security must always go hand in hand,” Garin said.
The Department of Energy has formed a task force with the Energy Regulatory Commission, National Electrification Administration and electric cooperatives to develop policies on the possible removal of system-loss charges and the corresponding value-added tax on electricity bills.
However, removing the charges from consumers’ bills would not eliminate the physical losses that occur as electricity moves through transmission and distribution networks.
CCCI said reducing avoidable losses would require investments in power lines, substations, transformers, metering, monitoring and network management.
The chamber said the country’s energy transition should therefore not focus solely on adding renew
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