Visayan Electric lowers power rates

CEBU, Philippines — Residential customers of Visayan Electric will benefit from a P0.62 per kilowatt-hour (kWh) reduction in their May–June electricity bills. This rate cut lowers the overall residential rate to P11.16/kWh, down from last month’s P11.78/kWh.

“For a household consuming 200 kWh, this translates to a savings of P124,” Visayan Electric said in a statement.

The country’s second-largest power distributor attributed the decrease to the lower cost of electricity in the wholesale electricity spot market (WESM), the trading platform where electricity is bought and sold.

Despite the rate drop, Visayan Electric reminded customers to remain mindful of their electricity use, especially as the dry season continues.

The utility noted that while Cebu and nearby provinces have seen scattered rains, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) has not yet declared the start of the wet season.

“We are very much still in summer, thus our cooling appliances are using more energy to achieve our desired temperature and this consumes more electricity,” said Visayan Electric Senior Assistant Vice President for Engineering Operations, Engr. Mark Anthony Kindica.

“If we are not mindful of our energy consumption, our bills could soar unexpectedly,” he added.

Meanwhile, the National Grid Corporation of the Philippines (NGCP) announced a reduction in transmission rates for May 2025, following significant decreases in both transmission wheeling and ancillary services (AS) rates for the April 2025 billing period.

The average transmission rate dropped by 28.45%, from P1.5240/kWh in March to P1.0904/kWh in April.

NGCP stated that the decrease was driven by lower transmission wheeling and AS rates. Transmission wheeling charges cover the cost of delivering electricity through NGCP's grid, while AS rates refer to costs for services that help stabilize the grid during supply-demand imbalances.

NGCP's transmission wheeling rate declined by 16.35%, from PhP0.5505/kWh in March to PhP0.4605/kWh in April.

“For the May 2025 electric bill of the end consumers, NGCP charges only 46 centavos per kWh for the delivery of its services,” NGCP said, noting that AS remains the largest component of transmission charges.

Average AS rates dropped by 36.07%, from PhP0.8094/kWh in March to PHP0.5175/kWh in April.

For the Visayas region, the April billing includes the fourth tranche of the settlement for the remaining 70% of AS costs from the March 2024 billing period, which had been deferred by the Energy Regulatory Commission (ERC).

NGCP clarified that AS costs go directly to generating companies and the independent electricity market operator of the Philippines (IEMOP) and emphasized that it does not profit from these charges. FPL (CEBU NEWS)