The cost of power outages

ASIDE FROM momentary inconvenience, power outages drain the economic vitality and social well-being of communities. The 162 unscheduled power interruptions in Panay Island in 2024 alone — totaling a staggering 811 hours of downtime — show the magnitude of this challenge. As Iloilo City and Panay Island continue to grow economically, the repercussions of an unreliable power supply ripple through every sector.

The economic toll of these outages cannot be overstated. For businesses, particularly those in manufacturing, retail, and service industries, even a brief power interruption can result in significant losses. Equipment downtime, spoiled goods, and disrupted operations erode productivity and profitability. Small and medium enterprises (SMEs), which form the backbone of Iloilo’s economy, often lack the resources to mitigate the effects of frequent outages, making them particularly vulnerable.

Also, power instability hampers investment. Companies considering Iloilo as a base for operations may think twice if they perceive its energy infrastructure as unreliable. This risks stalling the city’s impressive economic growth and undermining its potential as a hub for commerce and innovation.

Beyond economics, the social consequences of power outages are equally concerning. Households are forced to endure the discomfort and disruption of prolonged blackouts. Students struggle to study without adequate lighting, and families face difficulties in preserving food and maintaining a semblance of normalcy. For hospitals and healthcare facilities, power outages can be life-threatening, as critical equipment and operations rely on a steady electricity supply.

Frequent outages also take a psychological toll, breeding frustration and dissatisfaction among residents. The perception of an unreliable power supply can erode public trust in utility providers and government agencies tasked with ensuring energy security. This dissatisfaction often manifests in calls for accountability and action, adding pressure on stakeholders to deliver tangible improvements.

The National Grid Corporation of the Philippines (NGCP) must address these issues urgently. The delayed completion of critical infrastructure projects, such as the 3×100 MegaVolt Ampere substation in Iloilo City, has compounded the problem. While NGCP’s assurance of contingency measures is a positive step, action must follow words. Stakeholders must collaborate to ensure these projects are completed without further delays and that adequate ancillary reserves are in place to prevent future disruptions.

Uninterrupted electricity supply is a fundamental necessity for economic growth and social well-being. Addressing the root causes of frequent power outages and ensuring a reliable power supply should be treated as a priority.

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