Businesses affected by brownout loses P6M per hour

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Monday, May 5, 2014


TGE Davao City Investment Promotion Center has estimated an hourly income loss of as high as P6 million among businesses affected by power outages.

In a statement e-mailed to news organizations Monday, DCIPC officer-in-charge Ivan C. Cortez said estimated income loss per hour during regular business hours ranges from P3 million to P5 million and can go as high as P6 million if the power outage happens during peak hours.

"These estimates are based on the computed hourly income of all businesses in the city with a median of P19 million per hour during regular business hours but can go as high as P42 million during peak hours," he said.

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Cortez also pointed out that the estimates are based on the following assumptions"

* that business income is evenly distributed per district;
* up to 33 percent of the city experiences power outage at any given hour and;
* businesses affected are operating at 50 percent capacity during outages.

"To get nearer to reality figures, we need to map out all the businesses, input their daily or hourly income, and measure percentage of paralysis during power outages," he explained.

Cortez said despite the losses incurred by some businesses, big establishments like shopping malls are enjoying "brisk sales and more foot traffic during power outages."

He also said hotels and budget inns with generators are also expected to register higher occupancy rates by drawing in residents accustomed to sleeping in an air conditioned room.

"People seek refuge at places where there is continuous supply of electricity. So it is safe to assume that most of the losses become additional gains of the bigger players," he said.

Cortez also said that there should be a widespread information drive on the schedule of outages so that people and businesses can plan their day ahead.

"Developing coping strategies and mechanisms for the rotational power outages is a must for businesses especially those who do not have the capacity to buy, operate, and maintain high capacity generators," he said.

Earlier, Davao Light and Power Company announced that they have increased the duration of power outages in the city from one hour to two hours during off peak hours and four hours during peak hours.

According to the company the increase in duration was due to the shortage of power supply brought by the limited capacities of the Agus and Pulangi hydro-electric plants and the two units of Therma Marine Inc.

Published in the Sun.Star Davao newspaper on May 06, 2014.

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