Crisis in power supply is a crisis of power

Business Mirror
13 Jul 2014 Written by The BusinessMirror Editorial

POWER outages last week in Metro Manila raised eyebrows with the possibility that eight-hour brownouts reminiscent of President Cory Aquino’s day could happen again.

The public has good reason to worry. Power failures do not only create inconveniences, but put in jeopardy all attempts by the government and private sector to raise economic hopes. Small and medium businesses suffer the most. What should have been used for capital expenditures can go for purchasing generators and fuel. Zamboanga is a good example of how businesses nearly screeched to a halt during the power crisis in Mindanao.

Based on the white paper prepared by the Zamboanga City Chamber of Commerce and Industry on the effect of the crisis, it said, “A midsized business hotel reports spending P150,000 a month, since the blackouts started, to repair and replace air-conditioning units.”

It also explained how hospitals, more than any other business, need a steady power supply. Brent Hospital and Colleges reported spending P1.3 million for purchases of generators, fuel, new equipment to replace damaged ones, and additional manpower for maintenance.

Six-hour brownouts cost the Zamboanga City Medical Center P19,000 a day in diesel purchases to power only “operating rooms and other critical areas and equipment.” The report also indicated how scheduled company expansions took a backseat as its budget was realigned for generators and new computer servers.

The fact that power outages often come with spikes in power rates makes the inconvenience more infuriating. Operating costs, as well as overtime pay, forced businesses to chew more than they could swallow.

Even as a giant bottling plant spent P1.3 million per month on generator fuel, it also incurred heavy outlays of another million pesos on overtime pay due to forced changes in working hours. Let’s not even talk about how much was spent on additional manpower and maintenance costs for the continued use of generators.

Most generator sets that have the ability to power all corporate equipment are almost prohibitively expensive. Businesses that can afford generators often buy cheaper ones providing minimum power for their vital equipment. Despite the lower cost for the generator itself, fuel costs can be staggering. One bank, the report said, reported a 1,000-percent increase in fuel expenses.

When leadership is too weak to push for improvements in the most basic of government services like power supply, then we know electricity is really the least of our concerns.

In short, a power crisis means there is a crisis within the halls of power. In a country where electricity is wanting, you can also be sure the government’s power is waning. source