Residential consumers of Visayan Electric will see an increase of P3.56/kWh, bringing the total rate to P13.27/kWh for their July to August billing. This means that customers who consume at least 200 kWh per month will face an additional charge of P712 on their next bill.
This 4-month staggered payment ordered by the ERC, which started last month, will continue until the September- October billing cycle, so it’s crucial for us to be mindful of our power usage to lessen its impact.
Raul Lucero
Visayan Electric’s President and COO
The rate hike is attributed to the high prices of electricity in the Wholesale Electricity Spot Market (WESM) and the addition of the second installment of the staggered WESM payables for May.
Last month, the Energy Regulatory Commission (ERC) released Order 2024-01MC, which implements a 4-month staggered payment for power purchases made by distribution utilities like Visayan Electric from WESM in May. This caused an artificially low electricity rate for the June-July billing cycle since only the first installment of the WESM payables for the month of May was collected, as provided by the ERC order.
The normal residential rate for the July-August billing period was supposed to be only P12.37/kWh. However, the addition of the second installment of the deferred payment for WESM, which is about P0.90, has pushed the average residential rate to P13.27/kWh.
Visayan Electric’s President and COO, Raul Lucero, reminds customers to be mindful of their electricity use, especially with the staggered payment in the coming months. “This 4-month staggered payment ordered by the ERC, which started last month, will continue until the September- October billing cycle, so it’s crucial for us to be mindful of our power usage to lessen its impact,” said the COO.
“While electricity rates in WESM are unpredictable and could potentially decrease, the staggered payment is assured. Therefore, conserving power is essential to manage our consumption,” he added.
In addition to energy conservation, Lucero also urges customers to prioritize electrical safety during the rainy season, especially in flood-prone areas. Residents should be prepared to switch off their breakers as water levels rise and evacuate if necessary.
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