Cebu Electricity Advocates Raise Alarm Over Soaring Power Bills
The Cebu Electricity Rights Advocates (Cera) has voiced significant concern regarding the recent increase in electricity rates imposed by major power distributors across Cebu, warning that this could exacerbate the financial burden on households. According to Cera Convenor Nathaniel Chua, the group is dismayed by the latest rate adjustments implemented by Cebu Electric Cooperative I, Cebu Electric Cooperative II, and Cebu Electric Cooperative III, collectively known as CEBECO, where the average rate has now reached P13.37 per kilowatt-hour (kWh) following successive hikes in previous billing cycles.
Additional Charges and Market Complexities
In a related development, the Visayan Electric Company (Veco) has also enforced a new rate of P12.79 per kWh, which includes additional surcharges. Chua emphasized that while the energy market situation is complex, it is crucial to prioritize the impact on households and strengthen cost-control measures within utilities. He pointed out that the price surge stems from both external and internal factors, including the rapid growth in electricity demand in Cebu, which is estimated at approximately 150 megawatts annually.
This escalating demand has compelled distributors to procure extra supply from the Wholesale Electricity Spot Market (WESM), where prices are highly volatile. During peak demand periods or when plant outages occur, the cost of purchased electricity can spike significantly, further driving up consumer bills.
Aging Infrastructure and Operational Inefficiencies
Cera also highlighted the aging distribution systems in certain cooperative areas, which have resulted in high technical losses and increased charges for consumers. In rural regions, operational inefficiencies and elevated administrative overheads are cited as barriers to modernization efforts. Based on Cera's estimates, electricity expenses have risen by 15 to 20 percent in the early part of 2026, underscoring the urgency of addressing these systemic issues.
Calls for Transparency and Reform
In response to these challenges, the group is advocating for a transparent review of distribution efficiency, a reassessment of power supply agreements, and a suspension of under-recovery collections until service improvements are firmly established. "Operational excellence is the best hedge against inflation," stated Chua, urging cooperation among utilities, regulators, and consumers to ensure affordable and reliable electricity for Cebu.
The situation reflects broader concerns about energy affordability and infrastructure resilience in the region, with stakeholders calling for immediate action to mitigate the financial strain on residents and businesses alike.
