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Freeman Cebu Business

Power crisis: Mindanao now, Cebu sooner?

FULL DISCLOSURE - Fidel O. Abalos - The Freeman

Today, we may be able to safely say that the economy is doing well.  However, the fact remains that energy-related issues, such as the volatility of oil prices and the ever increasing cost of electricity have remained to hound us.  Notably, the country has remained a title contender in the “highest cost of electricity contest” in Asia, the other being Japan, the world’s third largest economy.

As election nears, these concerns may not be addressed at all by government leaders/politicians as they focus their energies on winning voters and supporters to their fold.  As we all know, even in the Holy Week break, some politicians, amid many concerns, were just too preoccupied on either fending off attacks on their persons or are extensively doing EPAL moves for visibility despite COMELEC’s warnings.  Unfortunately, as what had been the norm, whatever problems or concerns (like the worsening power shortage and the volatility of oil prices) we raise at this time will just get the usual buck passing and sugar-coated lip service. 

Today, the lingering and often set aside rising power cost and the worsening lack of it are felt all over the country.  These crises are prevalent, felt and withstood till near submission by every citizen.  Quite frankly, unless we become masochists, we will never get the feeling of contentment from the consequences of these menaces.  In fact, we had ours (power shortage) in Cebu a few years ago.  Though the situation is seemingly normal these days, there is absolutely no reason to rejoice.  This situation is very temporary.

Mindanao, however, is badly hit.   Reportedly, at late last year’s stakeholders’ conference, it was established that despite the multi-million peso rehabilitation works of Pulangui Power Plant IV in Maramag, Bukidnon, and the Agus 6 hyrdoelectric plant in the Agus River in Lanao del Norte, Mindanao still lack 200 megawatts.  Knowing fully well that on February 23, 2010, Mindanao’s generation deficit posted its biggest single day rise to 358 megawatts, then these two plants’ rehabilitation wasn’t enough.

Consequently, since 2010, brownouts prompted residents to use gas lamps and businessmen to run their factories with generators. Considering the prices of diesel these years, Mindanao’s factories had to bear the brunt of higher manufacturing cost.  This fact was confirmed by an officer of the Gen. Santos Chamber of Commerce and Industry who revealed that “businesses in Mindanao could lose as much as P300 million this summer on lower sales and higher power costs brought about by the power crisis in the area”.  He further said that “the biggest losers are the Gen. Santos-based canning factories and the deep-sea fishing vessel operators”.

Truth to tell, not only are these power shortages forcing companies to operate their own generators in millions of pesos a day in diesel fuel, those who can’t afford to have one have to pay workers even when the factories do not operate.  Thus, this summer, due to power outages that last between 7 and 10 hours, the businesses in Mindanao are expected to loss P300 million, as reported.  Worst, this power crisis will last until 2015, when two ongoing coal-fired power plants (in Sarangani and Davao City) shall be completed.  Palpably, that would mean two more years of agony. 

Likewise, in Cebu, we will soon be in the same situation as in Mindanao.  With all these ongoing developments, like mega malls, skyscrapers (office and residential condominiums and IT buildings), subdivisions, hospitals and factories, we shall soon feel the lack of it.  Though we can take a sigh of relief that, apart from our coal-fired power plants, we are right at the middle of two huge geothermal plants (Valencia, Negros Oriental and Tongonan, Leyte), the fact remains that these places have their own increasing needs too and may not be able to support us the way they did in the past.  Thus, if left unattended, our power situation may even be worst than that of Mindanao.

For your comments and suggestions, please email to [email protected].

vuukle comment

AGUS RIVER

CEBU

HOLY WEEK

MINDANAO

NEGROS ORIENTAL AND TONGONAN

POWER

PULANGUI POWER PLANT

SANTOS CHAMBER OF COMMERCE AND INDUSTRY

SARANGANI AND DAVAO CITY

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