Visayan Electric, the second-largest electric distribution utility in the country, expects that June power rates will reflect upward pressure on generation costs due to a combination of market and grid-related factors affecting the Visayas power system.
Key Drivers of the Rate Increase
The anticipated increase is primarily driven by higher generation charges resulting from tight supply conditions in the Visayas Grid. Elevated electricity demand and limited operating reserves led to several Yellow and Red Alert declarations in May, increasing reliance on higher-cost power sources and market purchases to ensure sufficient supply.
Generation costs were also affected by higher prices in the Wholesale Electricity Spot Market (WESM), continued depreciation of the Philippine Peso against the US Dollar, and sustained increases in global fuel prices, which influence the cost of electricity procured from power suppliers.
Utility's Mitigation Efforts
Recognizing the impact of these external pressures on Cebuano households, Visayan Electric has proactively utilized all available operational remedies to significantly shield consumers from the full impact of the market increase.
"Our primary focus during periods of market volatility is customer protection," said Mark Anthony B. Kindica, Visayan Electric’s President and General Manager. "While global fuel indices and grid alerts are beyond our control, we are working around the clock to aggressively manage what we can. Through disciplined power contract management, strategic supply allocation, and tight coordination with our generation partners, we have successfully absorbed and mitigated significant portions of the price spike so that it does not reach our consumers in full."
Energy Efficiency Tips for Consumers
With higher market rates in effect, the utility emphasizes that energy efficiency remains the most practical and effective defense against high electricity bills. Visayan Electric encourages households to optimize their energy habits and minimize the use of high-energy appliances during grid peak hours, typically from 1 p.m. to 4 p.m. and 6 p.m. to 9 p.m.
Simple yet impactful habits can significantly reduce overall kilowatt-hour consumption and help offset the rate adjustment. These include:
- Setting air conditioners to a comfortable and efficient 25°C
- Regularly cleaning appliance filters to maintain optimal efficiency
- Unplugging electronics and chargers when not in use
Commitment to Transparency
Visayan Electric reaffirms its unwavering commitment to transparency and will continue to work closely with the NGCP, the Department of Energy (DOE), and the Energy Regulatory Commission (ERC) to safeguard supply reliability and champion the interests of consumers across Metro Cebu.
