In April: Power rates up

CEBU, Philippines — Power consumers in Cebu will see a slight increase in their electricity bills this April, as Visayan Electric and the National Grid Corporation of the Philippines (NGCP) reported higher generation and transmission charges for the March 2026 billing period.

Visayan Electric said its residential rate rose to P12.57 per kilowatt-hour (kWh) for April 2026, up by P0.21 from March’s P12.36 per kWh. The utility attributed the adjustment to continued volatility in global energy markets, which has driven up power supply costs.

VECO assured the consumers that they have implemented measures to cushion the impact, including optimizing its supply strategy through a review of existing power contracts and sourcing electricity from the most cost-efficient options available.

“These conditions are largely driven by external factors beyond our control, but our priority has always been to protect our customers from sudden and significant increases,” said Visayan Electric President and General Manager Mark Anthony B. Kindica.

Kindica added that disciplined contract management and close coordination with government partners helped manage the latest adjustment while maintaining reliable service.

For a typical household consuming 200 kWh, the increase translates to an estimated additional P42 in the monthly bill.

The company said its proactive measures are part of ongoing efforts to minimize the impact of global energy disruptions on local electricity prices, but warned that global conditions remain fluid and may continue to affect future rates.

Consumers were also encouraged to adopt energy-efficient practices to better manage electricity costs.

Visayan Electric reiterated its commitment to transparency, prudent cost management, and collaboration with government and industry partners to support consumers during the current period of uncertainty.

Meanwhile, NGCP reported that overall transmission rates also increased for the same billing period. The average transmission rate rose by 4.26 percent to P1.7526 per kWh, from P1.6810 per kWh in February.

A significant portion of the increase was attributed to higher Ancillary Service (AS) rates, which cover costs for power supplied during supply-demand imbalances. AS rates rose from P0.8275 per kWh in February to P0.8516 per kWh in March.

NGCP clarified that these charges are pass-through costs and do not contribute to its revenues.

The grid operator said it does not earn from AS charges, as these are remitted directly to generation companies with bilateral contracts and to the Independent Electricity Market Operator of the Philippines (IEMOP) for services sourced from the reserve market.

The transmission wheeling rate, or the fee for delivering electricity through the grid, also increased slightly to P0.7022 per kWh in March from P0.6677 per kWh in February. However, NGCP emphasized that the adjustment has no impact on its earnings, as its allowable revenue is capped by the Energy Regulatory Commission (ERC).

The company added that Ancillary Services continue to make up the bulk of transmission charges and are essential to maintaining grid stability.

“As the system operator, NGCP’s priority is to ensure the grid remains resilient during supply-demand imbalances. NGCP does not profit from AS charges, as these are remitted directly to the providers who help maintain the continuous flow of electricity,” it said. -FPL (CEBU NEWS)