Small businesses lose as much as P10,000 per day while big ones lose as much as P100,000 daily during a power outage, results of a study covering the cities of Puerto Princesa, Baguio City and Tagum showed.
Non-government organization Ilaw Pilipinas spearheaded Focus Group Discussion: Economic Impact of Blackouts to Businesses in these cities the findings of which can become the basis in crafting policies and laws that will help protect businesses from the disruptive effects of power outages.
Agnes Garcia, ILAW national convenor, in a press conference said small establishments are forced to close on the day of the outage while others cut business hours.
Worse, some implement cost-cutting measures, including reduction of workers.
Garcia said those losses and uncertainties in turn affect the productivity and morale of workers and impact the reputation of businesses.
Across the three cities, retail and services are the most affected.
Small business in Puerto Princesa, for example, have to compete with bigger accommodation facilities which are equipped with generators for continuous power supply.
Food establishments suffer spoilage and wastage.
Garcia said outages not only discourage the entry of new businesses but also inhibit the growth of existing ones.
“Businesses cannot expand. Businesses cannot start up because the power outages are affecting their ability to deliver excellent, quality service,” she said.
Youth convenor Francine Pradez said businesses can take measures to continue operating during power outages, such as using generators or solar lamps.
Pradez also called on local governments to provide timely announcements of outages to businesses Ilaw proposed the grant of tax incentives for businesses investing in renewable or efficient equipment and for the upgrade of power infrastructure and grid capabilities on a national scale.
