Visayan Electric expects higher June power rates amid supply constraints

Local

CONSUMERS served by Visayan Electric may see higher electricity rates in June as generation costs continue to rise due to supply limitations in the Visayas power grid and broader market factors affecting the energy sector.

In a statement released on Friday, June 19, the utility company said the anticipated increase stems largely from higher generation charges brought about by tighter power supply conditions across the Visayas.

During May, the grid experienced periods of elevated demand and limited operating reserves, prompting several Yellow and Red Alert declarations.

These conditions forced greater reliance on more expensive power sources and purchases from the electricity spot market to maintain an adequate supply.

Aside from grid constraints, generation costs were also influenced by higher prices in the Wholesale Electricity Spot Market, the weakening of the Philippine peso against the US dollar, and sustained increases in global fuel prices, all of which contribute to the overall cost of electricity procurement.

Despite these challenges, Visayan Electric said it has implemented measures aimed at minimizing the impact of rising power costs on consumers.

"Our primary focus during periods of market volatility is customer protection," said Mark Anthony Kindica, Visayan Electric’s President and General Manager.

"While global fuel indices and grid alerts are beyond our control, we are working around the clock to aggressively manage what we can. Through disciplined power contract management, strategic supply allocation, and tight coordination with our generation partners, we have successfully absorbed and mitigated significant portions of the price spike so that it does not reach our consumers in full," Kindica added.

The company said it continues to maximize available operational strategies, including power contract management and coordination with generation suppliers, to cushion customers from the full extent of market-driven increases.

As electricity rates climb, Visayan Electric is urging households to adopt energy-saving practices to help manage their monthly bills.

Consumers are encouraged to limit the use of high-energy appliances during peak demand periods, particularly between 1 p.m. and 4 p.m. and from 6 p.m. to 9 p.m.

The utility also recommended setting air conditioners to 25 degrees Celsius, regularly cleaning appliance filters to improve efficiency, and unplugging electronic devices and chargers when not in use.

Visayan Electric said it remains committed to keeping consumers informed and will continue working with the National Grid Corporation of the Philippines, the Department of Energy, and the Energy Regulatory Commission to help ensure a reliable power supply and protect the interests of electricity consumers across Metro Cebu.(MyTVCebu)