Mandaue wants phased power rate payments

CEBU, Philippines — The Mandaue City Council is seeking a staggered payment scheme for consumers affected by the sharp increase in electricity rates during the August and September 2026 billing cycles.

The resolution, authored by Councilor Jennifer del Mar, asks the Visayan Electric (VECO) to allow consumers to settle their August and September bills through staggered payments extending until December 2026, without imposing penalties or disconnecting electricity services.

“Daghan man gung yangungo nga atong nadunggan, nga syempre ako sad as a consumer na-feel pod na nako nga ni-increase gyud ang atoang bills sa VECO,” said Del Mar.

The resolution, which the city council approved during the regular session on Monday, September 21, 2026, is intended to ease the financial burden on households, micro-retailers and local businesses that may have difficulty paying the higher bills in full within the usual payment period.

Del Mar said the increase in electricity costs came at a time when consumers were already dealing with economic pressures, affecting their ability to meet household and business expenses.

“Kahibalo ta nga tanan baya karon budgeted gyud nato, unya unexpected kaayo nato ang pag-spike sa electricity bill, so naguba gyud ang atoang financial planning,” said Del Mar.

The resolution also warned that the accumulation of higher utility bills could result in widespread disconnections if consumers are unable to settle their accounts within the standard payment period.

According to the proposed resolution, allowing consumers additional time to pay would give them an opportunity to adjust their household or business budgets while avoiding penalties and service interruptions.

Del Mar cited the need to protect the welfare and economic stability of constituents, particularly those who may be most affected by the sudden increase in power costs.

“Mao to ni-ask ta ni VECO nga kung pwede matagaan nila ang consumers nga maka-staggered payment until December,” said Del Mar.

The proposed staggered payment arrangement would cover bills from the August and September 2026 billing cycles, with payments allowed to continue until December 2026.

Del Mar said December was chosen partly because many workers receive their Christmas bonuses during the month.

“Magaan-gaan ba dinha nga part,” said Del Mar.

Meanwhile, VECO Marketing and Communications Manager Erik Monsanto appeared before the city council yesterday to answer questions from the councilors.

In an interview, Monsanto said the distribution utility has no authority to determine the payment arrangement requested by the council, although the council can still lobby for the proposal.

Monsanto said current electricity rate had reached ?14.96 per kilowatt-hour.

He explained that the rate had increased from the previous month’s rate of at least ?13 per kilowatt-hour. He said the rate could have reached ?17 per kilowatt-hour this month.

Monsanto said VECO deferred some costs before the Energy Regulatory Commission (ERC), resulting in the rate being kept at ?14.96 per kilowatt-hour.

He said the increase was partly due to a shortage in electricity supply, which prompted VECO to source electricity from the Wholesale Electricity Spot Market (WESM), where prices are market-driven.

He said suppliers in WESM operate based on the basic concept of supply and demand, wherein prices rise when supply is limited.

“Maong medyo mahal-mahal atong kuha didto maong na ang nag-drive upward sa presyo sa kuryente karon,” said Monsanto.

VECO buys electricity through WESM, where it bids for and purchases power from independent power producers.

Monsanto said that as a distribution utility, VECO cannot influence the cost of electricity, which he said is determined by market conditions and regulated by government agencies such as the Department of Energy and ERC.

“In terms of influencing market prices, wala gyud tay control, that is above us,” said Monsanto.

Monsanto said VECO is taking steps to lessen the impact of higher rates on consumers through the deferment of payments.

“Imbes bultuhon og paningil, atong gibuak-buak og ginagmay nga mas sayon bayran,” said Monsanto.

Monsanto, however, told the media that VECO cannot decide on the staggered payment arrangement proposed by the Mandaue City Council but said the utility can apply for deferment of payment as approved by the ERC.

“Muhangyo ta sa ERC nga anam-anamon lang og singil, imbes nag-umento og ?2, ato lang buak-buakon og ginagmay, atong ikarga sa gamay nga bill… small portions added to the bill rather than the whole big ?2,” Monsanto explained.

Currently, Monsanto said the ERC has implemented a moratorium on disconnections until November this year, allowing electricity bills to be deferred without consumers immediately facing disconnection.

“Atong gamiton ang kahigayonan nga gihatag sa ERC para makapangita tag bisan ginagmay lang para atong madata-datahan lang gihapon hantod mahuman ang moratorium,” said Monsanto.

Monsanto said VECO will not implement disconnections even if payments are made at a later date under the applicable deferment arrangement.

“Lahi man gud to’ng naaay disconnections nga two months, financially pressured gyud ka to come up with the exact amount in two months,” said Monsanto.

He added that residents can take the opportunity to settle their payments gradually.

“Let’s use this opportunity to pay, even little by little hantod ma-zero-out atong bill,” said Monsanto.

VECO also advised consumers to manage their electricity consumption to lessen the impact of higher rates, noting that while consumers cannot control the utility-side costs, they can manage their household consumption.

This includes basic electricity-saving practices such as unplugging appliances when they are not needed and turning off lights when no one is using them. — (FREEMAN)