CONSUMER advocacy group Cebu Electricity Rights Advocates (Cera) has renewed its call for stronger consumer protections amid concerns that the decommissioning of baseload power plants in Naga, Cebu could strain the region’s electricity supply and trigger potential price increases.
According to the group, the shutdown of the Naga Oil-Fired Power Plant, which supplied 44.64 megawatts (MW), along with its 0.44 MW Black Start Diesel Engine Generating Unit on March 31, 2025, has worsened existing power supply challenges in Cebu Province.
In a disclosure to the local bourse in February, Aboitiz Power attributed the decommissioning to the aging diesel engines, which had impacted the plant’s efficiency and reliability.
Baseload power, the minimum electricity required to meet continuous demand, has long been the backbone of a stable power supply.
Cera said the loss of this capacity has created significant distribution gaps, particularly as the intense summer heat drives up electricity consumption for cooling and other needs. While distribution utilities have increased contracted power supply, these additions have yet to fully compensate for the shortfall.
Because of this, Cera convenor Nathaniel Chua is urging Cebu Gov. Gwendolyn Garcia to establish a Third Party Bids and Awards Committee (TPBAC). The proposed body would include representatives from both government agencies—such as the Department of Energy, the Energy Regulatory Commission, and the National Grid Corp. of the Philippines—and private sector stakeholders like the Cebu Chamber of Commerce and Industry, the Philippine Retailers Association and Cera itself. The TPBAC aims to ensure that the Competitive Selection Process for power producers adheres strictly to legal and transparency standards.
Cera emphasized that such oversight is crucial to prevent sudden and excessive electricity price hikes, especially with the expected continuation of harsh weather conditions driven by climate change.
The group warned that without intervention, electricity-dependent basic comforts could become unaffordable for many Filipinos.
Cera also noted that dwindling power availability is already impacting consumers through higher prices in the Wholesale Electricity Spot Market (WESM). The current shortage is driving up electricity costs, making essential appliances like air conditioners and electric fans more expensive to operate.
Industry experts highlight the contrast between the volatile WESM prices—which fluctuate with market conditions like the ongoing heatwave—and the more stable rates offered by contracted power supply agreements between power plants and distribution utilities.
However, many electric cooperatives in Cebu remain heavily reliant on the WESM, leaving their consumers particularly vulnerable to price spikes.
Data from the Independent Electricity Market Operator of the Philippines show recent surges in electricity rates in this segment, ranging from a modest 2.73 percent to a staggering 95.5 percent.
Cera stressed the urgent need for long-term solutions to address power shortages and distribution gaps to ensure stable and affordable electricity rates for all Cebuano consumers.
According to NGCP’s power situation outlook for Tuesday, April 29, the Visayas will have an available generating capacity of 2,695 MW with a system peak demand of 2,447 MW. This is based on the available data as of 2 p.m. on April 28. / KOC