Customers of Visayan Electric will see an increase of P0.53 per kilowatt hour in their bills for November-December due to high generation rates.
The increase brings the overall average rate for residential customers to P16.40 per kWh from the P15.87 per kWh of the previous month. This means that a typical household that consumes at least 200 kWh per month will have to pay an additional P106 for the month of November.
Visayan Electric President and Chief Operating Officer Raul C. Lucero explained that the continued high prices of coal and oil are the main causes of the increasing prices of electricity. “The weak peso, as well as the high inflation rate in the country has also contributed to the high prices of coal and oil since these commodities are imported from other countries,” he said.
The price of power in the Wholesale Electricity Spot Market (WESM) may have slightly decreased, Lucero added, but this cannot significantly bring down the overall price of electricity.
Electricity rates have been increasing since the start of the year due to supply and demand concerns as an effect of the opening of economies after lockdowns caused by COVID-19 and the trade embargoes implemented due to the war between Ukraine and Russia.
Among the components of an electricity bill, generation and transmission charges account for at least 68 percent of the total electricity cost while government taxes and other charges comprise 13 percent. Generation, transmission, government taxes, and other charges are pass- through charges that are paid to the power suppliers and the government.
Visayan Electric’s distribution charge, which comprises 19 percent of the total electricity bill, has remained unchanged at P1.5992 per kWh since 2014, as approved by the Energy Regulatory Commission (ERC).
To lessen the impact of the increase, Lucero reminded Visayan Electric customers to be mindful of their electricity use. Historically, he added, power consumption would go up due to the Christmas season when households would use lights, stock up on food and hold parties.
“Every year, even during the pandemic, the demand for electricity goes up because of all the activities related to the Christmas season. While this is the time to be merry, let us also be mindful of how we use our electricity so that we can minimize the effect of high electricity rates.” he said. Among the ways of conserving power, he added, is to limit the frequency of use of Christmas lights and ensuring that appliances, especially heating and cooling systems, are well-maintained and working properly.
Visayan Electric also continues to offer payment arrangements for customers who cannot pay their bills in full. Customers may apply for payment arrangements in any Visayan Electric service center.
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