Residential electricity rates for Visayan Electric customers surged to a year-high P13.74 per kilowatt-hour (kWh) in June, up from P12.88/kWh in May, resulting in higher monthly bills for consumers. The increase follows a challenging period for the Visayas Grid, where high demand and low reserves triggered multiple Yellow and Red Alert declarations in May, forcing utilities to purchase more expensive power from the open market.
Generation Charges Drive Rate Hike
The primary factor behind the June rate hike is the sharp rise in generation charges, the cost of producing electricity. Visayan Electric attributed this to elevated prices in the Wholesale Electricity Spot Market (WESM), where real-time power prices fluctuate based on supply, demand, and plant outages. Additionally, the continued depreciation of the Philippine Peso against the US Dollar and sustained increases in global coal prices—used by most power suppliers—pushed production costs higher.
"Generation costs were affected by higher prices in the Wholesale Electricity Spot Market, the continued depreciation of the Philippine Peso against the US Dollar and sustained increases in global fuel prices, particularly for coal which are used by most power suppliers," Visayan Electric stated.
Transmission Savings Outweighed
While the National Grid Corp. of the Philippines reduced transmission charges for June, the savings were insufficient to offset the generation cost surge. "While transmission charges registered a downward adjustment, transmission costs account for only one component of a customer's electricity bill. The reduction in transmission charges was outweighed by the increase in generation charges, which remain the largest component of the bill," Visayan Electric explained.
The June rate of P13.74/kWh is the highest so far in 2026. Rates began the year at P12.79/kWh in January, dipped to P12.38/kWh in February and P12.36/kWh in March, then climbed steadily to P12.57/kWh in April and P12.88/kWh in May.
Energy-Saving Tips for Consumers
To help households manage costs, Visayan Electric urged consumers to reduce energy use, especially during peak hours from 1 p.m. to 4 p.m. and 6 p.m. to 9 p.m. Simple adjustments include setting air conditioners to 25 degrees Celsius, cleaning appliance filters regularly, and unplugging electronics and chargers when not in use.
