The residential electricity rate in Cebu has increased in May 2026 due to higher generation costs, according to the Visayan Electric Company Inc. (Veco). The rise is attributed to the increase in global oil prices and supply shortages in the Visayas Grid.
Veco announced that the residential electricity charge is now at P12.88 per kilowatt-hour (kWh) for May 2026, reflecting an increase of P0.31 per kWh compared to April 2026. The company stated that this change is primarily driven by the higher generation charge, which has been affected by the continuous rise in oil prices in the world market. Additionally, the supply shortage in the Visayas Grid, with recent "red" and "yellow alerts" indicating thin power reserves amid high public demand, has contributed to the increase.
“Our priority has always been to protect our customers from sudden and significant increases, even as we face these external market volatilities and grid stability challenges,” said Mark Anthony Kindica, president and general manager of Veco. He added that while the company cannot control oil prices and inflation, it continues to explore ways to manage its supply and operations to minimize large increases in customer bills.
This rate hike comes as the National Grid Corporation of the Philippines (NGCP) continues to issue alerts for the Visayas Grid due to insufficient power reserves, caused by the outage of several power plants and high energy demand. Recently, the grid operator placed the system under red and yellow alerts multiple times, indicating unstable electricity supply across the region.
Veco reported that it has coordinated with other power companies and the Department of Energy (DOE) to manage supply and maintain proper service amid this grid crisis. To help mitigate the impact of reserve shortages, Veco has implemented operational measures such as the Interruptible Load Program (ILP). Under this program, large customers temporarily use their own generators when supply is thin to reduce grid congestion.
The company emphasized that these measures are being undertaken to maintain stable electricity service for consumers in Cebu, despite the challenges in the system. Veco also called on customers to conserve electricity and be mindful of their usage, especially during peak hours. According to the company, conservation remains the most effective way to manage monthly bills amid fluctuating global oil prices and energy supply shortages.
