Visayan Electric intervention spares consumers from steeper July power hike

Local

THE Visayan Electric's move to defer a portion of higher generation costs has spared consumers from a much steeper increase in their July electricity bills after the Energy Regulatory Commission (ERC) approved the utility's request for cost deferment.

For a household consuming 200 kilowatt-hours (kWh) a month, the intervention means an estimated increase of only ₱232 this billing cycle. Without the utility's action, the additional charge would have reached around ₱770.

The approved deferment kept the July residential rate at ₱14.90 per kWh, instead of the ₱17.59 per kWh consumers would have paid had the full increase been passed on. June's residential rate was ₱13.74 per kWh.

"We are not simply passing these costs through to the consumer," said Mark Anthony B. Kindica, Visayan Electric President and General Manager in a statement sent on Saturday, July 18.

"We are proactively engaging the ERC for cost deferment, securing immediate supply agreements with generators, and accelerating our shift to stable, long-term power sources to minimize the burden on our customers,” Kindica added.

The utility said electricity prices have been driven upward by a combination of factors that began affecting the Visayas Grid in February.

These include higher transmission charges, rising global fuel prices linked to tensions in the Middle East, increased electricity demand during the summer months, and soaring prices in the Wholesale Electricity Spot Market as supply tightened.

Conditions worsened in early July when more than 1,000 megawatts of generating capacity became unavailable, prompting a Red Alert declaration and pushing generation charges—the largest component of electricity bills—to ₱11.00 per kWh, the highest level recorded in the past year.

Aside from seeking ERC approval for cost deferment, Visayan Electric also entered into Emergency Power Supply Agreements to augment available supply and launched a Competitive Selection Process this month to secure more stable and competitively priced electricity beginning next year.

The company said it continues to coordinate with the National Grid Corporation of the Philippines, the Department of Energy, the Independent Electricity Market Operator of the Philippines, and the ERC to help maintain reliable power supply while protecting consumers from volatile electricity costs.

Visayan Electric also encouraged customers to conserve electricity during peak demand hours—from 1 p.m. to 4 p.m.and 6 p.m. to 9 p.m.—to help manage their monthly power bills.(MyTVCebu)