Global energy technology firm Schneider Electric is warning that outdated and overloaded electrical systems are intensifying fire risks in the Philippines, as the Bureau of Fire Protection (BFP) recorded more than 1,800 additional fire incidents caused by electrical faults in 2024 compared with the previous year.

The company said many residential and commercial buildings continue to operate on aging electrical infrastructure, with common hazards such as undersized wiring, overloaded circuits, and illegal “octopus connections” cited by the BFP as leading causes of electrical fires. Rising electricity demand driven by increased appliance use and hybrid work arrangements has further strained systems not designed for today’s load requirements.

The impact of unstable power systems is also being felt in business operations, according to Schneider, citing data from consumer advocacy group ILAW–which showed that power outages result in daily losses of about PHP 10,000 to PHP 30,000 for micro, small, and medium enterprises, while large firms lose around PHP 100,000 in revenue per day due to downtime and equipment disruption.

On the efficiency side, the company cited data from the Department of Energy, which showed about PHP 400 million in electricity and fuel savings from energy efficiency programs in early 2024, reinforcing the potential economic gains from modernized power systems and real-time energy monitoring.

Safety concerns were further highlighted in early 2025 after the Department of Trade and Industry seized more than PHP 134 million worth of uncertified electrical products over fire and electrocution risks.

Schneider Electric said these developments point to the need for stronger focus on circuit protection, backup power systems, certified electrical components, real-time energy monitoring, and scalable power infrastructure, particularly as data centers and digital facilities expand their power requirements.

“Electrical systems, when properly designed, prevent hazards, protect both people and properties, and strengthen the infrastructure needed to support business continuity, community safety, and the country’s national development,” said Harold Lim, Country Solutions Head of Schneider Electric Philippines.

Schneider Electric has operated in the Philippines for more than 30 years and has been recognized by Time Magazine and Statista as the World’s Most Sustainable Company.

As fire incidents and power demand continue to rise, should regulators tighten enforcement of electrical safety standards for both new and existing buildings?

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