Table of Contents
Residential customers of Visayan Electric will pay higher electricity bills this June after the utility increased its residential rate to ₱13.74 per kilowatt-hour (kWh), up from ₱12.88/kWh in May, following a sharp rise in generation costs brought about by tight power supply conditions across the Visayas Grid.
The increase marks the highest residential electricity rate recorded by the distribution utility so far this year, reflecting the impact of elevated electricity demand, constrained operating reserves, and higher costs in the Wholesale Electricity Spot Market (WESM), where utilities procure additional power when supply from contracted sources is insufficient.
Tight Supply
In a statement, Visayan Electric said the rate adjustment was primarily driven by higher generation charges after the Visayas Grid experienced several Yellow and Red Alert declarations in May. Electricity demand surged during the period while available operating reserves remained limited, forcing distribution utilities to source more expensive electricity from the spot market to maintain a stable power supply.
“The increase in electricity rates is primarily driven by higher generation charges resulting from tight supply conditions in the Visayas Grid,” the company said.
Visayan Electric explained that WESM prices fluctuate hourly depending on several factors, including available power supply, demand levels, fuel prices, and unplanned outages or shutdowns of generating plants. As supply tightened in May, spot market prices climbed, significantly increasing the cost of electricity purchased by utilities.
“Generation costs were affected by higher prices in the Wholesale Electricity Spot Market, the continued depreciation of the Philippine Peso against the US Dollar, and sustained increases in global fuel prices, particularly for coal, which are used by most power suppliers,” Visayan Electric said.
Lower Transmission Charges
While the National Grid Corporation of the Philippines (NGCP) implemented a downward adjustment in transmission charges for June, Visayan Electric said the reduction was insufficient to offset the much larger increase in generation costs, which account for the biggest portion of a customer’s monthly electricity bill.
“While transmission charges registered a downward adjustment, transmission costs account for only one component of a customer’s electricity bill. The reduction in transmission charges was outweighed by the increase in generation charges, which remain the largest component of the bill,” the utility said.
The company noted that any savings from lower transmission costs were effectively erased by higher generation expenses stemming from tighter supply conditions, elevated spot market prices, foreign exchange movements, and higher fuel costs.
Highest Residential Rate This Year
The June adjustment continues an upward trend in residential electricity rates after relatively stable prices during the first quarter of 2026.
Residential customers paid ₱12.79/kWh in January before rates eased to ₱12.38/kWh in February and ₱12.36/kWh in March. Charges then began climbing again to ₱12.57/kWh in April and ₱12.88/kWh in May before reaching ₱13.74/kWh this June.
The latest increase is expected to have a greater impact on household budgets, particularly for families whose electricity consumption rose during the recent summer months because of increased use of cooling appliances and other electrical equipment.
Consumers Urged To Conserve Electricity
Amid the higher rates, Visayan Electric encouraged customers to adopt energy-saving measures to help manage their monthly electricity expenses.
The utility advised consumers to reduce electricity use during peak demand periods from 1 p.m. to 4 p.m. and from 6 p.m. to 9 p.m., when power consumption across the grid is typically at its highest.
Among the recommended measures are setting air conditioners to an energy-efficient temperature of 25 degrees Celsius, cleaning appliance filters regularly to improve efficiency, and unplugging chargers and electronic devices when they are not in use.
The company said simple adjustments in daily electricity consumption can help households lessen the impact of higher generation costs while supporting efforts to ease pressure on the power grid during periods of high demand.
Source:
https://www.sunstar.com.ph/superbalita-cebu/presyo-sa-kuryente-misaka-ngadtosa-p1374kwh
https://business.inquirer.net/597880/visayas-remains-under-yellow-alert