The Visayan Electric Company (Veco) has raised by 40 centavos the cost of electricity per kilowatt hour starting January 1, 2015.
The adjustment, according to Sebastian Lacson, Veco chief operating officer is because of more expensive power from private power producers.
Veco has lost two megawatts of power from the geothermal power plant in Leyte which were damaged by supertyphoon Yolanda (Haiyan).
To augment this loss of supply, Veco went to private power producers.
Lacson made the clarification during a public hearing called by the Cebu City council yesterday.
Groups like Sanlakas and the Freedom from Debt Coalition have registered their opposition to the power price hike from P4.60 per kilowatt-hour to P5 per kilowatt-hour.
Despite the opposition, Veco will be implementing the power rate hike.