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A Cebu-based consumer group is pushing for a sweeping overhaul of the province’s energy supply mix, warning that continued dependence on imported fossil fuels leaves households exposed to volatile global markets.
The Cebu Electricity Rights Advocates (CERA) said escalating tensions in the Middle East, particularly involving Iran, have already disrupted global energy benchmarks, triggering sharp increases in fuel prices that directly affect electricity rates in Cebu.
CERA convenor Nathaniel Chua said the province’s reliance on coal, liquefied natural gas (LNG), and oil makes it “dangerously exposed” to geopolitical shocks.
“When crude oil jumps from $70 to $110 per barrel, our peaking power plants—which we rely on during the hot summer months—become prohibitively expensive,” Chua said.
He added that the situation is exacerbated by the Philippines’ current energy structure, where more than 80 percent of the national mix still depends on fossil fuels.
Pass-Through Pricing
The group warned that the impact of rising global fuel costs is immediately felt by consumers due to the country’s pass-through pricing mechanism, which allows utilities to directly reflect fuel cost increases in electricity bills.
Chua pointed to recent price surges, including a 150-percent increase in the Asian natural gas index to around $25 per million British thermal units and coal prices climbing to about $140 per metric ton. “Our utilities are currently tethered to a sinking ship,” he said.
About half of Cebu’s power supply is generated from coal-fired plants located in Toledo and Naga, making the province particularly vulnerable to what Chua described as “war-time pricing.”
Indigenous Renewable Energy
CERA is urging Cebu’s main distribution utilities – Visayan Electric Company, Cebu Electric Cooperative (CEBECO), and Mactan Electric Company (MECO) – to significantly increase the share of renewable energy in their supply portfolios.
The group emphasized that indigenous sources such as solar, wind, and geothermal energy offer price stability, as they are not subject to international fuel market fluctuations.
“They must contract more local solar, wind, and geothermal power—sources that don’t increase in price just because there is a conflict in the Middle East,” Chua said.
The call aligns with broader energy security concerns, as shifting to domestic renewable sources could help insulate the province from future global disruptions.
Grid Bottlenecks
Beyond generation, CERA highlighted transmission constraints as a major barrier to optimizing renewable energy use. The group called on the National Grid Corporation of the Philippines (NGCP) to accelerate upgrades to inter-island connections linking Cebu to Negros and Mindanao.
“Cebu is surrounded by renewable-rich neighbors, yet we are starving for affordable power,” Chua said.
Negros has a surplus of solar and geothermal capacity, while Mindanao holds significant untapped renewable potential. However, delays in submarine cable and transmission projects have prevented Cebu from accessing these lower-cost energy sources.
CERA described these interconnections as critical “energy highways” and urged NGCP to treat their completion as a matter of national security.
Call For Policy Reforms
The group is also calling on the Energy Regulatory Commission (ERC) to mandate higher renewable energy sourcing requirements for utilities and to conduct a performance audit of NGCP’s progress on key interconnection projects.
As a short-term measure to ease the burden on consumers, CERA is pushing for Congressional action to permanently remove the value-added tax (VAT) on electricity bills, describing it as “inflation first aid” for households grappling with rising costs.
“We are entering the hottest months of the year with some of the highest fuel prices in history,” Chua said. “If action is not taken now, Cebuano families will continue paying the cost of global conflicts through their power bills.”
CERA stressed that the current crisis underscores the urgency of transitioning to a more resilient and self-reliant energy system. Without decisive action from utilities, regulators, and policymakers, the group warned that Cebu could remain vulnerable to recurring cycles of price shocks driven by events beyond its control.
Source:
https://www.sunstar.com.ph/cebu/cebu-utilities-urged-to-tap-green-energy