Visayan Electric has secured approval from the Energy Regulatory Commission (ERC) to reduce the impact of rising generation costs on consumer electricity rates. The utility capped the July residential rate at P14.90 per kilowatt-hour (kWh), significantly less than the projected P17.59.
Proactive Measures Amid Rising Costs
We are not simply passing these costs through to the consumer. We are proactively engaging the ERC for cost deferment... to minimize the burden on our customers.
Mark Anthony Kindica, President and General Manager of Visayan Electric
- Capped July rate at P14.90 per kWh, down from P17.59
- Achieved a nearly 70% reduction in projected rate increase
- Engaged in Emergency Power Supply Agreements for immediate supply
This move comes as the Visayas grid faces challenges from increased demand and higher fuel prices, particularly after market disruptions in the Middle East. Since February, these factors have contributed to spikes in generation costs.
In early July, a Red Alert was issued due to over 1,000 MW of unavailable generating capacity, leading to a year-high generation charge of P11 per kWh.
For households consuming 200 kWh, the approved rate adjustment means an estimated additional cost of P232 this billing cycle, a stark contrast to the P770 increase that would have occurred without intervention.
Visayan Electric is also working closely with the National Grid Corporation of the Philippines (NGCP) and the Department of Energy (DOE) to ensure supply reliability. The company encourages consumers to conserve energy during peak hours to further manage costs.