The Philippine Chamber of Commerce and Industry (PCCI) today expressed grave concern over the recent red alerts and widespread rotational brownouts that hit both the Luzon and Visayas grids last May 13, the country’s first red alert this year that left over 200,000 businesses and and households without power for an average of 3 hours. More households south of Manila also experienced without power for 3 hours on Thursday, May 14.
This supply instability comes at a time when the Philippine economy is already under
severe strain, with GDP growth slowing to 2.8 percent in Q1 2026 and inflation projected to reach 6.3 percent.
The situation is particularly alarming in the Visayas, where the National Grid Corporation of the Philippines (NGCP) has placed the grid under red alert from 3–8 p.m. and yellow alert from 8–9 p.m. on May 13, 2026.
With 2,510 MW available capacity against 2,413 MW peak demand, the margin is dangerously thin. Compounding this, 12 power plants have been on forced outage since March 2026, while 15 plants are operating at derated capacities, resulting in 862.3 MW unavailable to the grid.
PCCI President Perry Ferrer stated, “The looming power crisis in the Visayas is a wake-up call. Energy instability is not just a regional issue, it is a national economic risk. With growth already at 2.8 percent and inflation rising, prolonged brownouts will further weaken productivity, investor confidence, and household welfare.”
At the Energy Summit 2026 last May 12, PCCI underscored the urgency of diversifying energy sources, accelerating renewable investments, and strengthening infrastructure transparency. The discussions highlighted that energy reliability is not only a technical issue but a critical economic safeguard.
Ferrer emphasized that the current crisis validates calls for reform and collaboration.
The Chamber warns that continued power instability will further weaken investor confidence, exacerbate inflationary pressures, and undermine inclusive growth. To address the situation, PCCI urged swift action to:
– Enhance contingency planning and transparent communication during grid alerts.
– Fast-track reforms that incentivize renewable and alternative energy investments.
– Address systemic inefficiencies in power generation and distribution.
– Prioritize vulnerable sectors most affected by brownouts and inflation.
The Chamber stated its commitment to continue working with government, energy providers, and stakeholders to ensure resilience in the face of energy and economic challenges.
