A series of yellow alerts declared by the National Grid Corporation of the Philippines (NGCP) in the Visayas from August 1 to 6 could push up electricity prices in the region, MORE Electric and Power Corp. (MORE Power) warned.
A yellow alert is issued when power reserves dip below safe levels needed to cover demand.
MORE Power Vice President for Corporate Energy Sourcing and Regulatory Affairs Niel Parcon said power prices rose last month due to tight supply nationwide, with the Visayas bearing the brunt of the shortage.
“Unfortunately, we in the Visayas are the hardest hit,” he explained. “Panay Island, particularly, is at the tail-end of NGCP’s transmission line network.”
Meanwhile, Negros Power Energy Sourcing Manager Engr. Christian John Villena explained that a yellow alert signals that supply is just enough to meet peak demand, with minimal reserves to spare. While it does not automatically cause blackouts, he said the thin margin drives up prices in the spot market. He highlighted that additional costs show up in monthly bills through higher generation and transmission charges.
With reserves running thin in the Visayas, the grid had to draw power from Luzon, Negros, and Mindanao to keep Panay Island supplied. NGCP managed to cover the demand of 2,475 megawatts (MW) with 2,528 MW available, leaving a thin reserve of just 53 MW.
The Department of Energy (DOE) reported that 14 power plants were offline and five others were running below capacity, stripping around 385 MW from the grid.
(Also read: Is AKELCO Equipped to Meet Boracay’s Growing Energy Demands?)
Strong distribution, but weak supply
MORE Power comes fresh from a Supreme Court ruling that affirmed the law expanding its franchise into areas formerly served by the Iloilo Electric Cooperatives (ILECO) I and III. The decision capped years of complaints over soaring electricity bills and irregular meter readings.
In July 2024, the Supreme Court upheld MORE Power’s expanded franchise, declaring monopolies unconstitutional and stressing that competition brings more reliable service and fairer prices.
The Iloilo-based private utility said it remains committed to keeping power rates manageable for city consumers, noting it was recently cited for having the most affordable electricity rates in both the province and the wider Western Visayas region. This stems from striking long-term deals with suppliers at competitive prices and carefully tapping market opportunities.
Since generation charges make up most of a household’s bill, the utility stressed that securing supply through competitive bidding helps shield consumers from volatile spot market costs.
But with supply constraints beyond its control, MORE Power has limited ability to bring prices down at this time.
Negros Power echoed this sentiment, noting that yellow alerts translate to possible blackouts and higher electricity costs. Villena emphasized the need for long-term fixes, such as new power plants and stable capacity, to shield households from the strain of an unreliable grid.
(Also read: Siquijor Blackout Probe Ends with SIPCOR Shutdown)
Baseload power: a pressing need
In April 2024, President Ferdinand R. Marcos Jr. led the ceremonial energization of the Cebu-Negros-Panay (CNP) 230-kilovolt (kV) backbone project in Bacolod City. He urged energy players and private firms to channel investments into the region’s infrastructure to secure long-term demand and drive development.
“While the CNP is a major step forward, I implore all stakeholders in the Visayas to strategically identify suitable locations and host new baseload generation plants, as well as renewable energy and energy storage systems,” said Marcos. “This will bolster energy sufficiency and sustainability in Negros and Panay Islands.”
Baseload power refers to the minimum level of electricity that must be consistently supplied to meet the steady, round-the-clock demand of consumers. It is usually provided by reliable, large-scale power plants that can run continuously, such as coal, natural gas, geothermal, or hydro facilities.
According to BusinessWorld columnist Bienvenido Oplas, Cebu serves as one of the focal energy points in Visayas, supplying power to Negros and Panay. This dependence partly explains why electricity in those islands is costlier than in Cebu. “Additional capacity in Cebu will help stabilize the prices in these three islands and sub-grids. Bohol, which mainly imp
orts geothermal power from Leyte, has the highest prices in the Visayas,” he wrote.
However, the Visayas does import a significant amount of power from other grids to make up for local shortages. Under the Mindanao-Visayas Interconnection Project (MVIP), Mindanao facilities are supplying over 400 MW to the Visayas grid.
Meanwhile, Cebu itself falls short of local capacity; in May 2024, its peak demand of about 1,223 MW exceeded its plant capacity of 1,123 MW, causing it to import roughly 60% of its requirements from neighboring islands.
With renewables expanding in the energy mix, industry leaders reiterated that conventional plants remain vital for grid stability and growth. Mandaue Chamber of Commerce and Industry
(MCCI) President Mark Ynoc explained the need for more power plants to support rising investments and a growing population.
“When there is a pressing need for power, then we definitely need additional generation capacity and infrastructure,” he noted.
While some environmental groups have raised concerns over emissions from new plants, former MCCI President Steven Yu underscored the need for pragmatism, saying that Cebu’s baseload capacity is shrinking as existing facilities age.
The 169-MW expansion at Therma Visayas Inc.’s Toledo facility illustrates the balance Cebu is trying to strike between supply security and sustainability. Yu said this project, which he described as the “last remaining non-renewable energy expansion,” can be offset by carbon credits and will help prevent costly blackouts. “While we are scaling up on our RE generation capacity, this will help stabilize our power supply vs demand and avoid costly blackouts,” he said.
Other initiatives to secure Cebu’s energy future center on renewables and storage. In Lapu-Lapu City, Caohagan islet has embraced solar to light homes and public spaces, while a ₱1.2-billion hybrid battery project is set to rise in the Mactan Economic Zone. A 150-MW solar farm is also underway in Daanbantayan. Alongside projects like the Third Transmission Voltage Interconnection, these initiatives seek to strengthen grid reliability and support the province’s fast-growing economy.
Visayas’ power gap reflects nationwide issues
The DOE forecasts that Philippine electricity consumption will surge from 91.3 terawatt-hours (TWh) in 2022 to more than 400 TWh by 2050, reflecting an annual growth rate of 5.49%.
Given the intermittent nature of renewable energy, the DOE stressed that coal will continue to play a supporting role. DOE Undersecretary Mylene Capongcol noted that local mines remain crucial for “green metals” like copper, nickel, and lithium used in clean technologies.
Meanwhile, DOE Secretary Sharon Garin mentioned possible exemptions to the 2020 coal moratorium for “own-use” plants, underscoring coal’s ongoing importance as baseload power.
A steady power supply not only ensures reliability but also helps keep electricity prices in check, easing the burden on consumers. Meralco ecently flagged a chronic shortage of new baseload capacity in the Luzon grid as the main driver of high spot market rates. It noted that most recent additions have been solar, which does not produce power at night, and that many existing plants are over 20 years old and prone to forced outages.
The utility stressed that aside from a few recent projects like EERI and GNPower Dinginin, the Luzon grid has not seen a large new baseload or greenfield plant since 2002. To close the supply gap, Meralco supports competitive selection processes aimed at attracting new projects and expanding the country’s baseload capacity, a call echoed by energy experts as crucial for long-term stability and affordable electricity.
Sources:
https://visayandailystar.com/electricity-rates-higher-due-to-yellow-alerts/
https://www.panaynews.net/sc-solidifies-more-powers-franchise-expansion/
https://www.panaynews.net/explain-surge-in-power-bills-eleco-1-2-3-told/
https://newsinfo.inquirer.net/1968614/power-franchises-not-exclusive-property-sc-rules
https://www.philstar.com/business/2025/06/05/2448220/more-power-steps-efforts-lower-rates
https://www.sunstar.com.ph/cebu/conventional-power-plants-seen-vital-to-secure-ph-energy-transition
https://www.philstar.com/the-freeman/cebu-business/2024/01/27/2328910/cebu-needs-more-power-plants
https://www.sunstar.com.ph/cebu/unified-energy-strategy-for-cebu-pushed
https://mb.com.ph/2025/09/15/doe-no-plan-to-close-coal-mines
https://insiderph.com/uploads/files/32/MERALCO%20PRESS%20RELEASE%20ON%20PSAs.pdf