Cebu Consumer Group Calls for Shift to Local Renewable Energy Amid Soaring Power Bills
Residents of Cebu are confronting the dual threat of escalating electricity bills and global oil price surges, leading a consumer advocacy group to urgently call for a transformation in the province's power supply. The Cebu Electricity Rights Advocates (CERA) has issued a statement urging local power distributors and the national grid operator to reduce dependence on imported fossil fuels and prioritize indigenous renewable sources. This move aims to shield consumers from the volatile fluctuations of international market prices.
Global Tensions Expose Cebu's Energy Vulnerabilities
According to CERA convenor Nathaniel Chua, escalating tensions in Iran have weakened global energy benchmarks, exposing Cebu's economy to price instability due to its heavy reliance on coal, liquefied natural gas, and oil. "Our utilities are currently tied to a sinking ship," Chua stated, highlighting that the pass-through pricing system allows fuel price increases to be directly passed on to consumer bills. He emphasized that nearly half of Cebu's local power supply comes from coal plants in Toledo and Naga cities, making the province susceptible to what he termed "war-time pricing."
Challenges in Renewable Energy Integration
CERA has challenged major distribution utilities in Cebu—including Visayan Electric Company, Cebu Electric Cooperative (Cebeco), and Mactan Electric Company (Meco)—to immediately boost the proportion of locally generated solar, wind, and geothermal power in their supplies. Chua cited severe global fuel price hikes, with the Asian natural gas index rising to around $25 per million British thermal units and coal prices reaching approximately $140 per metric ton. Additionally, the group called on the National Grid Corporation of the Philippines (NGCP) to accelerate upgrades to transmission interconnections linking Cebu with Negros and Mindanao, regions known for abundant renewable energy resources. "Cebu is surrounded by neighbors with plentiful renewable energy, yet we are starved of affordable power," Chua remarked, noting that submarine cable and transmission project delays hinder the province from accessing cheaper local energy.
Regulatory and Legislative Actions Proposed
To address these issues, CERA has urged the Energy Regulatory Commission (ERC) to mandate utilities to procure a higher percentage of electricity from local renewable plants and conduct performance audits on NGCP's progress with critical projects in the Visayas and Mindanao. As an immediate relief measure, the group has also appealed to Congress to permanently remove the value-added tax (VAT) on electricity bills to alleviate household burdens amid inflation. "We are entering the hottest months of the year with some of the highest fuel prices in history," Chua concluded, underscoring the urgency of the situation.
