Visayan Electric increases power rate for September- October billing cycle

MANAGING household budgets can be particularly challenging when a large portion goes toward electricity bills. With rising costs, many families are feeling the financial strain.

For instance, Maricel Laurente, a single mother of three from Barangay T. Padilla, Cebu City told MyTV Cebu on Monday, September 16, that she had to cut her children’s television time from five hours to just two each night to manage electricity expenses.

Meanwhile, Aldrin Jimenez, a college student renting a room in Barangay Pahina Central, said on Sunday that he limits the use of his rice cooker and chooses to buy cooked rice from a neighboring carenderia and ready-to-eat canned goods.

He added that he pays an average of P500 for electricity per month, which, for him, strains his budget as a student.

However, their efforts come amid a new rate adjustment announced by Visayan Electric, which will increase electricity rates by P0.95 per kilowatt-hour (kWh) for the September to October billing cycle.

This adjustment raises the residential rate to P13.52 per kWh, up from P12.57 per kWh last month. This means that for an average household consuming 200 kWh per month, the change will add P190 to their monthly bill.

The increase is driven by higher transmission charges from the National Grid Corporation of the Philippines (NGCP) and the final installment of deferred payments for power purchases through the Wholesale Electricity Spot Market (WESM) made last May.

The rise in NGCP transmission charges follows the resumption of the Ancillary Services-Reserve Market (AS-RM), which provides backup power from qualified generating plants to ensure a stable electricity supply.

Visayan Electric President and COO, Engr. Raul C. Lucero, addressed the situation, noting that while higher payments for NGCP's ancillary services are necessary, they are crucial for maintaining grid stability and preventing power shortages.

"Although we have to pay more for NGCP's ancillary services, it is essential for maintaining grid stability and preventing power shortages and eventual power outages," Lucero said in a statement.

Despite the increase, Lucero remains hopeful about future rate reductions. He pointed out that the completion of deferred WESM payments and cooler weather in the coming months could help ease rates.

As the holiday season approaches, he also urged customers to prioritize electrical safety when installing lights and decorations.

"Whether at home, work, or in business establishments, practicing electrical safety is key to preventing accidents caused by improper use of electricity," Lucero advised.

The NGCP confirmed that the rise in transmission charges in September is a result of the AS-RM's resumption.

While transmission wheeling rates decreased by 5.5 percent from July to August 2024, AS rates surged by 125.92 percent in August due to the AS-RM's resumption on August 5, 2024.

The NGCP clarified that, although consumers may see increased transmission charges, this is due to regulatory compliance. They contract 50 percent of ancillary services through firm agreements and the remaining 50 percent through the AS-RM.

The company emphasized that it does not profit from ancillary services and that the cost is a pass-through, benefiting generating companies and grid stabilization services.(MyTVCebu)

• Tags
• #Visayan Electric
• #Electric Bill
• #Residential Rate
• #National Grid Corporation of the Philippines
• #Electricity Spot Market,