Visayan Electric Company Inc., the second-largest distribution utility in the Philippines serving over 500,000 customers, has announced a residential electricity rate of P12.88 per kilowatt-hour (kWh) for May 2026. This represents a P0.31/kWh increase from the April rate, driven by higher generation costs resulting from global fuel price hikes and tight supply conditions in the Visayas Grid.
Reasons for the Rate Adjustment
The upward adjustment is primarily due to an increase in the generation rate, which was impacted by rising fuel prices worldwide. Additionally, the National Grid Corporation of the Philippines (NGCP) has declared multiple Red and Yellow Alerts in the Visayas Grid recently, caused by thin operating reserves and high system demand. These alerts have created a challenging operational environment for all power providers in the region.
Company Response and Measures
Mark Anthony B. Kindica, President and General Manager of Visayan Electric, emphasized the company's commitment to protecting customers from sudden and significant increases despite external market volatilities and grid stability challenges. He stated, "While fuel prices and inflation remain beyond our control, we continue optimizing our supply portfolio and operations to help cushion customers from sharper increases."
In response to the NGCP's grid alerts, Visayan Electric has been proactive in coordinating closely with power generators and the Department of Energy (DOE). The utility has implemented strategic operational measures, such as its Interruptible Load Program (ILP), to ensure reliable service and prioritize Cebu's power needs despite the thin reserves affecting the Visayas Grid.
Energy Efficiency Advice
Visayan Electric encourages customers to remain mindful of their energy consumption, especially during peak hours. Practicing energy efficiency continues to be the most effective strategy for households to manage monthly expenses during periods of high demand and global energy uncertainty.
