Visayan Electric secures ERC approval to reduce July rate

VISAYAN Electric took urgent steps to protect consumers from a sharp rise in generation costs that threatened to push July 2026 residential rates to P17.59 per kilowatt-hour (kWh), up from P13.74 per kWh in June.By actively coordinating with the Energy Regulatory Commission (ERC) to defer a portion of these costs, the utility successfully capped the rate at P14.90 per kWh, effectively reducing the immediate increase by nearly 70 percent through the ERC-approved deferment. “We are not simply passing these costs through to the consumer,” said Mark Anthony Kindica, Visayan Electric president and general manager. “We are proactively engaging the ERC for cost deferment, securing immediate supply agreements with generators, and accelerating our shift to stable, long-term power sources to minimize the burden on our customers.” Since February, a sequence of market and supply shocks has driven up generation costs across the Visayas grid: higher transmission charges, global fuel price increases tied to Middle East market disruption, summer peak demand straining thin reserves, and surging WESM prices as generation shortfalls forced costlier spot-market purchases.In early July, a Red Alert and over 1,000 MW of unavailable generating capacity intensified the strain, pushing generation charges — the largest component of a customer’s bill — to a year-high P11 per kWh.To limit the impact on customers, Visayan Electric: Pursued cost deferment with the ERC to lower the rate passed to consumers Invited generators into Emergency Power Supply Agreements (EPSA) for immediate supply Launched a Competitive Selection Process (CSP) this month for more stable supply starting next year For a household consuming 200 kWh, the deferred rate adds an estimated P232 to the bill this cycle, versus P770 without intervention by the utility.Beyond mitigating rate increases, the company continues to coordinate with the National Grid Corporation of the Philippines (NGCP), the Department of Energy (DOE), the Independent Electricity Market Operator of the Philippines (IEMOP) and the ERC to protect supply reliability and consumer interests.Visayan Electric encouraged customers to conserve energy during peak hours (1–4 p.m. and 6–9 p.m.) to help manage their bills. (PR)