RESIDENTS within Visayan Electric Company’s service area can expect lower electricity bills for the October-November billing period, as the utility provider has announced a significant P2.36 per kilowatt-hour (kWh) reduction in residential rates.
What to expect
With this rate decrease, the total residential rate will drop from P13.52 per kWh in the previous billing cycle to P11.16 per kWh. For households that consume around 200 kWh per month, this change translates to savings of roughly P472.
Why are rates dropping?
There are two main reasons for the lower electricity rates:
Cheaper power from the Wholesale Electricity Spot Market (WESM):
WESM is where electricity is bought and sold between power generators and distribution utilities like Visayan Electric. Recently, prices in this market have fallen, allowing Visayan Electric to pass those savings on to consumers.
End of staggered payments for past WESM charges:
Last summer, during a series of Red and Yellow Alerts (periods of high electricity demand and low supply), WESM prices spiked. To avoid a sudden rate increase for customers, the Energy Regulatory Commission (ERC) allowed utilities to spread out these higher costs over four months, from June to September. With the conclusion of this staggered payment plan, a charge of 92 centavos per kWh that had been temporarily added to bills is now removed.
Previous rate changes
This latest decrease comes after a few months of fluctuating electricity prices:
In July-August 2024, rates jumped by P3.56 per kWh, bringing the total to P13.27 per kWh.
Before that, in the June-July 2024 billing period, rates were lower, averaging P9.71 per kWh.
Impact on consumers
The current reduction should provide some much-needed relief for households that have been dealing with rising electricity costs over the past few months.
As a result, October-November bills are expected to be lighter on consumers' wallets.
Areas served by Visayan Electric
Visayan Electric serves the cities of Cebu, Mandaue, Talisay, and Naga, as well as the municipalities of Liloan, Consolacion, Minglanilla, and San Fernando. Its service area covers 674 square kilometers and serves an estimated population of 1.73 million people. (SunStar Cebu)
*** This article was made with the help of an automated editorial system.