The Visayas region is facing a severe energy crisis after the National Grid Corp. of the Philippines (NGCP) placed the power grid under a Red Alert on Wednesday, May 13, 2026. Business groups in Cebu are warning that repeated power disruptions are hurting local companies, driving up operational costs, and making the region less attractive to international investors.
What is a Red Alert?
A Red Alert is the highest warning level, indicating insufficient electricity supply to meet demand. The NGCP warned that Manual Load Dropping, or rotating power outages, may be necessary to prevent a total grid collapse. The alert was active from 3 p.m. to 8 p.m., followed by a Yellow Alert until 9 p.m. This follows a similar Yellow Alert on May 12.
Why is power supply low?
The NGCP reported several major power plants are offline or struggling:
- Forced Outages: Three large units (TVI Units 1 & 2 and PEDC Unit 3) unexpectedly stopped operating.
- Long-term Issues: 12 power plants have been offline since March 2026, and 15 others are running at reduced capacity.
- High Demand: Hotter weather and rising electricity use have pushed the grid to its limit, leaving only a tiny margin of extra power.
Areas that may face brownouts include parts of Cebu, Mactan, Negros, Iloilo, Leyte, Samar, Aklan, Antique, Bohol, and Capiz.
Businesses feel the heat
Cebu's business community says they cannot afford these constant disruptions. Regan Rex King, president of the Cebu Chamber of Commerce and Industry, called the situation a growing concern. “For many businesses—especially manufacturers, hospitals, and small shops—even short periods of power instability can lead to productivity losses and increased operating costs,” King said. He warned that if power remains unreliable, investors might start looking elsewhere.
Barbara “Bambi” Gothong-Tan, president of the Mandaue Chamber of Commerce and Industry, pointed out that some factories spend 40% of their budget on electricity alone. She noted that outages can damage expensive equipment and make the Philippines less competitive than neighboring Asian countries with cheaper, more stable power.
A small silver lining on bills
While supply is shaky, there was some good news for consumers. The NGCP announced that transmission charges on electricity bills will decrease this May. The average rate dropped by about 8.8%, falling to P1.5983 per kilowatt-hour. This is due to lower costs for wheeling (moving power) and ancillary services (reserve power for grid stability).
Looking ahead
Business leaders are now calling for a stronger long-term plan. They are asking for more investment in new power plants, better transmission lines, and more renewable energy to ensure the Visayas does not stay in the dark. As the region grows, the pressure is on the government and energy providers to ensure that a Red Alert does not become the new normal.
