Drought, Power Shortages Threaten to Raise Utility Costs in Eastern Visayas

Posted on October 29, 2026 at 10:39 AM

Tacloban City — Prolonged heat and drought could mean higher electricity costs and more expensive food for families in Eastern Visayas as declining water levels affect power generation and dry conditions threaten farm production, a local business leader said.

Leyte Provincial Board Member and business leader Wilson Uy said the effects of extreme heat go beyond water shortages, warning that businesses may have to spend more on fuel to keep their operations running during power interruptions.

Uy explained that when water levels fall, hydroelectric power generation can decline, adding pressure to the electricity supply.

“When there is no water, hydroelectricity fails, causing an electricity shortage,” Uy said.

Businesses turn to costly generators

During brownouts, businesses that cannot afford to stop operations often rely on diesel-powered generators. But running these machines costs more than getting electricity from the regular power grid, Uy said.

The added expense puts more pressure on business owners already dealing with rising operating costs, particularly fuel prices.

For businesses that depend on generators for extended periods, the cost of keeping lights on and equipment running can become a significant burden. These expenses may also affect the prices of goods and services, although the impact on consumers will vary from one business to another.

Uy warned that continued power supply problems could make it harder for businesses to manage their expenses at a time when many households are also struggling with the rising cost of living.

Farmers and consumers also feel the effects

The dry spell could also hurt farmers, particularly those who depend on rainfall for their crops.

Lower harvests mean less income for farming households. When the supply of vegetables and other agricultural products declines, consumers may also face higher prices in public markets.

The effects can extend to small businesses in farming communities, where farmers with less income have less money to spend on food, supplies and other daily needs.

For Eastern Visayas, where many families depend on agriculture and small businesses for their livelihood, a prolonged dry spell could put further pressure on already limited household budgets.

Uy calls for fuel tax relief

As costs rise, Uy urged families to be more careful with their spending, prioritize basic needs and support locally produced goods.

He also renewed calls for the national government to consider temporarily suspending the excise tax on fuel to ease the burden on consumers and businesses.

Lower fuel costs, he said, could help transport operators, businesses and other sectors that rely heavily on diesel and other petroleum products.

Uy acknowledged that the economy is going through a difficult period but expressed hope that the situation would improve.

“Our economy is going through a slow period, but this is a temporary setback,” he said, urging workers, business owners and government officials to work together to protect jobs and support local businesses.

As Eastern Visayas prepares for the possible effects of prolonged dry conditions, the challenge will be to keep electricity, water and food affordable while helping farmers and businesses cope with rising costs.