Businesses in Zamboanga warn unresolved power deficiency could lead to retrenchment

ZAMBOANGA CITY — Employers here may have to start laying off workers to avoid or stem losses, if the power situation in Mindanao does not improve.

The reaction was made following a statement from the National Grid Corporation of the Philippines (NGCP) that power interruptions in Mindanao will continue.

Hydropower-dependent Mindanao has continued to struggle with a power deficiency despite rains that started in May. A check with the NGCP Web site showed that the entire island had a 46 MW deficiency yesterday.

“Retrenchment will always be our last option. But if ever the [situation will not improve,] management will really think about this,” Roberto G. Valerio, executive director of the Industrial Group of Zamboanga, Inc. told journalists here.

Mr. Valerio said the business sector expects Mindanao’s power deficiency to get worse until 2012. “Our conclusion is that the situation will get worse before it gets better because there are no new power generation plants that will be built,” he said.

In an earlier statement, the NGCP admitted it “cannot meet the actual demand of customers connected to the Mindanao grid” since “two to three of Napocor’s eight power plants are shut down for various reasons” at any given time.

In this city alone, outages run up to two hours daily.

Mr. Valerio said the industrial sector here, which consists largely of canning and retail firms, have been coping by using generator sets. “What we are complaining about are the unscheduled outages either from the NGCP or Zamcelco [Zamboanga City Electric Cooperative, Inc.] They have to announce it so we can plan ahead well our production,” he said.

Yahya A. Seti, the assistant regional director here of the Labor department, said the government has readied P10 million for livelihood programs to cope with retrenchments. — D. T. Wee, BUsinessworld