VISAYAN Electric Company’s consumers can expect lower electricity bills for the October-November billing period, as the distribution utility will implement a P2.36 per kilowatt-hour (kWh) reduction in the residential rate.
The reduction will bring the total residential rate down to P11.16 per kWh from the previous billing cycle’s P13.52 per kWh, Visayan Electric said in an advisory on Tuesday, Oct. 15, 2024.
This decrease is expected to result in savings of approximately P472 for households with a monthly consumption of 200 kWh.
The power price drop is attributed to two main factors:
1. Lower electricity prices in the Wholesale Electricity Spot Market (WESM), where power is traded among generators and distribution utilities in the Philippines.
2. The conclusion of a four-month staggered payment plan for WESM dues accumulated in May 2024.
The Energy Regulatory Commission had required all utilities to spread out the charging of high WESM rates to consumers from June to September. These high rates were a result of increased electricity demand during a series of Red and Yellow Alerts last summer.
“Now that these staggered payments have concluded last month, the additional charge of approximately 92 centavos that was added to residential electricity rates over this period has been fully settled,” Visayan Electric said.
This rate decrease comes after recent fluctuations in electricity prices.
Consumers experienced a sharp rate increase from July to August 2024, with rates rising by P3.56 per kWh to P13.27 per kWh. This followed a decrease in the June-July 2024 period, when the average rate was P9.71 per kWh.
The new lower rates are expected to provide relief for consumers who have faced rising electricity costs in recent months.
Visayan Electric serves cities of Cebu, Mandaue, Talisay and Naga, and municipalities of Liloan, Consolacion, Minglanilla and San Fernando. Its franchise area covers 674 square kilometers with an estimated population of 1.73 million. / PR