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The recent power shortages that have resulted in two-hour rotational power brown outs in the province of Cebu could hamper export recovery in the Central Visayas region.  The province of Cebu, including Negros Occidental, Siquijor and Bohol, contribute approximately around 5% to 10% of the total export volume of the entire country.  Total export turnover in 2009 dipped by 21.7% to US$38.3 billion due to the global recession. In the first 3 months of 2010, export turnover has been averaging at a 42% monthly uptrend as compared to last year’s levels. This was due to the strong showing of the electronics sector and other exports from the econzones. Meanwhile, the non-locators operating in Cebu have posted a 19% increase in export volume for the first quarter of 2010.  This confirms that the recovery has indeed started; however, there are fears that the doubling of the rotational power interruptions from 1 hour to 2 hours could hamper the recovery especially in the SME sector. Estimates of flat growth to a worst case scenario of a 5% decrease of export sales from non-locators have been raised by concerned export stakeholders.

The Visayan Electric Company, Inc. (VECO), the local power distribution company, estimates that a power supply deficit of around 28 MW will hound the area this year. VECO is saying that the current situation could persist until 2011 before the first of the three 82 MW coal-fired plants being built by the Cebu Energy Development Corporation becomes operational. Wholesale electricity spot market (WESM) could temporarily address the shortage by tapping other hidden sources of electricity; however, there are fears that this might cause price spikes that could be commercially unattractive.  KEPCO-SPC Power Corporation hopes to complete the construction of its two 100 MW coal-fired plant in Naga by 2011.