For June-July billing period: VECO cuts power rates by 30-centavo per kwh

CEBU, Philippines — An average household with 200 kwh power consumption per month may enjoy at least P60 less in their June to July electric bill.

Visayan Electric has announced that electricity rates dropped by 30 centavos per kilowatt hour as a result from the slight decrease in the prices of fuel last May.

Visayan Electric President and Chief Operating Officer Engr. Raul C. Lucero said the slight decrease in fuel cost for the month of May also brought down the generate rates and electricity rates.

“The price of fuel in the world market has really affected power generators, and our electricity rates, as well. It's a good thing that for the billing month of June - July, our average rate for residential customers had dropped by 30 centavos," said Lucero in a statement.

The power utility firm said that the average rate for residential customers has dropped to P13.70 per kwh from the P14 per kwh last month. This translates to an estimated P60 decrease in the bill of an average household with a 200 kwh consumption per month.

The announcement provides a sigh of relief for ordinary power consumers, who are still reeling from the effects of the pandemic, typhoon Odette and the skyrocketing prices of fuel. 

International reports say the reopening of economies all over the globe has caused a surge in the demand for fuel in an industry that cut down on production because of the COVID-19 lockdowns.

The continuing war between Ukraine and Russia, which started last February, has also contributed to the fuel supply and price issues.

Aside from the high prices of fuel, there have also been transmission constraints in the Visayas Grid that caused power curtailments, driving power prices higher, even in the Wholesale Electricity Spot Market (WESM).

Lucero added that the prices at WESM would go as high as P30 per kwh at certain times of the day because of high fuel prices and transmission constraints issues.

Lucero, however, said that Visayan Electric is taking steps to contract more affordable power supply by applying for an emergency power purchase.

To help its customers, the electric utility said that it continues to offer payment arrangements where customers can pay for their bills in installments.

"While we are doing our best to get reasonably-priced power from power generators, we would like to remind our customers that being mindful of their electricity consumption can really help them manage their electricity bills now that high fuel prices are beyond our control," Lucero said. — FPL (FREEMAN)