Electricity bills for residential consumers in Metro Cebu are expected to increase in June due to insufficient supply in the Visayas Grid, high demand, and rising generation costs.
Visayan Electric Company Advisory
In an advisory, the Visayan Electric Company (Veco) stated that the June electricity charges will reflect higher generation costs resulting from a combination of market and grid factors currently affecting the Visayas power system.
Veco did not disclose the exact amount of the price increase but confirmed that June electricity charges will be impacted by higher generation costs driven by thin supply in the Visayas Grid and higher prices in the Wholesale Electricity Spot Market (WESM). Limited operating reserves and high electricity demand led to the declaration of several Yellow and Red Alerts in May.
Reasons for Higher Costs
According to Veco, this grid situation forced power providers to rely heavily on more expensive power sources and purchase from the spot market to ensure sufficient supply for consumers. The company also cited higher WESM prices, the continued depreciation of the Philippine peso against the US dollar, and the ongoing rise in global oil prices as factors contributing to higher generation costs.
Veco clarified that these external market pressures significantly affect the cost of electricity they purchase from power suppliers.
