CEBU, Philippines — Incoming Cebu City Mayor Nestor Archival said that city government's annual electricity cost is expected to reduce by 10 to 20 percent following the approval of his ordinance promoting the use of solar panels in city operations.
He revealed that the City is spendibg about P250-million per year on electricity.
The switch to solar panels can reportedly save the City between P25 million to P50 million per year.
Archival, a known environmental advocate, said this initiative will not only cut costs but will also promote the use of clean energy alternatives.
He shared that the City Hall’s executive building spends P1 million per month, while the legislative building is paying P700,000 on electricity alone.
“Now, kung ma-implement ni ang Solar Ordinance, there’s no cost to the City - wala ta'y budget pangitaon," he said.
Citing the ordinance, Archival said interested contractors can install solar panel systems with no cost to the city government.
He said after a contractor earns its share of profit, the savings will then be turned over to the city.
“Ang return, ang savings, ila, at certain number of years. Kung makuha nila ang investment nila, basta profit, ilang i turn over sa syudad,” he added.
Under the ordinance, the city government will award contracts to the shortest turnover, while also weighing the reputability of the contractor.
City Ordinance 2772, which was approved on June 4, 2025, was authored by Archival, who is also an outgoing councilor.
He said that this is the ordinance he most wanted the council to approve before he will official start his term as mayor on July 1.
Meanwhile, residential customers of Visayan Electric (Veco) can expect a slight relief in their electricity bills, with a P0.13 per kilowatt-hour (kWh) reduction for the June–July billing cycle.
“This brings the overall residential rate down to P11.03/kWhfrom the previous month’s P11.16/kWh,” Veco said, in a statement released yesterday.
For a household consuming 200 kWh, this translates to a P26 savings on the monthly bill.
The power utility said the decrease is mainly attributed to lower generation costs, driven by the decline in electricity prices at the Wholesale Electricity Spot Market (WESM)—a platform where electricity is bought and sold.
In addition, reduced rates in the Ancillary Services–Reserve Market (AS-RM) also contributed to the lower billing rate, the Veco statement said.
Despite the decrease, Veco reminded customers to continue practicing energy conservation to avoid bill shock, especially as unpredictable weather may influence power usage and grid behavior.
“This rainy season, let us make sure that our electrical appliances and connections are kept safe and away from areas that are exposed to the elements to avoid any electrical-related accidents,” said Visayan Electric OIC-President and General Manager Mark Kindica. — CNU Intern Joseph Adrian Leyson, JG (FREEMAN)