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Power distributor Visayan Electric Co. said it is closely monitoring global energy developments as geopolitical tensions in the Middle East and rising fuel costs threaten to push electricity prices higher just as summer demand begins to surge.
Visayan Electric said electricity rates could face upward pressure in the coming months due to developments in global energy markets, particularly disruptions affecting the prices of imported fuels such as coal and oil used in power generation.
Generation Charge Increase
The company noted that the generation charge, which represents the cost of electricity supplied by power producers, accounts for a major portion of customers’ monthly electricity bills. Because part of the Philippines’ power supply relies on imported fuel, fluctuations in global markets can directly influence generation prices and eventually affect consumer electricity rates.
These risks are unfolding as the country enters the summer season, when warmer temperatures typically drive higher electricity consumption from households and businesses.
“While global events may influence electricity prices, our priority remains ensuring reliable service for our customers while keeping them informed and empowered to manage their energy use,” said Mark Anthony B. Kindica, president and general manager of Visayan Electric.
Cebu Consumers Brace For Higher Bills
Consumers in Cebu are already being warned to expect rising electricity costs as the summer heat increases demand and fuel prices climb.
Visayan Electric, which supplies power to Metro Cebu, said increasing prices of imported coal and oil are a major factor behind the anticipated rate increases.
Energy officials have also flagged potential supply disruptions that could further pressure electricity costs. Energy Secretary Sharon Garin recently said issues involving natural gas deliveries from Qatar could push electricity prices up by as much as 16 percent by April 2026.
Meanwhile, Cebu Electric Cooperative (Cebeco) 3 reported that its residential electricity rate for March has climbed to ₱10.78 per kilowatt-hour, an increase of ₱0.49. The cooperative attributed the rise largely to the need to procure electricity from the Wholesale Electricity Spot Market (WESM), where prices have recently been elevated.
Structural Challenges
Energy advocacy group Cebu Electricity Rights Advocates (CERA) noted that electricity rates in Cebu are already higher than those in other major Philippine cities such as Davao and Iloilo.
The group pointed to a combination of factors contributing to the higher costs, including rising demand for electricity and aging power distribution infrastructure in the region.
The situation highlights how global events can ripple through local energy systems. Geopolitical tensions that affect oil markets can also influence fuel prices, shipping costs, and the overall cost of electricity across the country.
Government agencies have begun monitoring potential ripple effects. The Department of Energy is reviewing marine fuel pricing amid concerns about shipping costs, while the Department of Trade and Industry is tracking how higher logistics and power expenses could affect the prices of basic goods.
Call For Energy Efficiency
Despite the looming cost pressures, Visayan Electric assured customers that power supply within its franchise area remains sufficient to meet projected summer demand.
The utility is encouraging households and businesses to adopt energy-efficient practices to help reduce electricity consumption and manage costs during periods of market volatility.
“At the same time, we encourage households and businesses to practice energy efficiency. Every kilowatt-hour saved helps reduce demand on the system and can help manage electricity costs during periods of global price volatility,” Kindica said.
Visayan Electric added that it will continue providing updates to residential, commercial, and industrial customers as generation costs are finalized for each billing cycle.
Source:
https://www.sunstar.com.ph/cebu/rising-fuel-costs-put-pressure-on-shipping-electricity
https://cebudailynews.inquirer.net/704634/cebu-oil-supply-above-required-inventory-doe