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Cebuano households are facing higher electricity bills following recent rate increases by major power distributors, prompting a consumer advocacy group to call for reforms aimed at stabilizing costs and improving efficiency.
The Cebu Electricity Rights Advocates (CERA) said the latest adjustments by Cebu Electric Cooperative (CEBECO) I, II and III, as well as Visayan Electric Company (VECO), are adding pressure on family budgets, particularly among low- and middle-income consumers.
New Rates
CEBECO’s average rate now stands at ₱13.37 per kilowatt-hour (kWh), reflecting increases of ₱1.30/kWh and ₱0.33/kWh in recent billing cycles. Meanwhile, VECO adjusted its rate to ₱12.79/kWh, up by ₱0.35/kWh.
CERA convenor Nathaniel Chua said the group recognizes market challenges but stressed the need to cushion consumers from rising costs. “While we recognize the complexities of the energy market, the financial impact on Cebuano households must be balanced with more aggressive utility-side cost-saving measures,” he said.
CERA estimates that household electricity expenses rose by 15 to 20 percent in early 2026, outpacing increases in other basic commodities.
Rising Demand
According to CERA, Cebu’s electricity demand is growing by around 150 megawatts annually. To meet this rising requirement, distributors such as CEBECO often procure additional supply from the Wholesale Electricity Spot Market (WESM).
Spot market prices are volatile and tend to spike during peak demand periods or when power plants experience outages. Chua said heavy reliance on WESM exposes consumers to sudden increases in generation costs.
“Cebu demand is growing by 150 MW every year. This forces CEBECO to buy at WESM. Prices here are extremely volatile. When demand in Cebu peaks or a power plant breaks down, CEBECO has to buy from WESM at ‘sky-high’ rates,” he said.
CERA said diversifying supply portfolios and securing more stable bilateral Power Supply Agreements (PSAs) could help mitigate price swings.
Operational Issues
Beyond market factors, the group cited internal challenges within distribution systems. In several cooperative areas, aging infrastructure contributes to higher technical losses, which are passed on to consumers through electricity bills.
Reports indicate that some cooperative districts continue to post system loss levels near the upper limit allowed by regulators. CERA contrasted VECO’s relatively modern urban grid with conditions in rural cooperative areas. While VECO still faces the task of optimizing bilateral contracts to ensure long-term affordability and reliability, CERA said some CEBECO areas struggle with operational inefficiencies and high administrative overhead.
The group described these challenges as partly rooted in “bureaucratic inertia,” which it said has slowed innovation and responsiveness in certain cooperatives. Unlike private utilities with greater access to capital for modernization, electric cooperatives face structural constraints that may limit rapid upgrades.
Proposed Measures
To help stabilize electricity costs, CERA is calling for a transparent review of CEBECO’s distribution efficiency to identify areas where technical losses can be reduced. It is also urging both VECO and CEBECO to reassess their PSAs to secure more stable and lower-cost energy sources.
In addition, the group is seeking the suspension of “under-recovery” collections until service reliability benchmarks are met. “Operational excellence is the best hedge against inflation,” Chua said, emphasizing the need for collaboration among utilities, regulators, and consumers.
As the new rates take effect, CERA said sustained increases could further burden households if structural and supply-side issues are not addressed.
Source:
https://www.sunstar.com.ph/amp/story/cebu/cebu-families-face-rising-bills-as-electricity-rates-climb