Residential consumers of the Visayan Electric Co. are advised to be mindful of their electricity use, with the expected rate increase from July to August 2024.
The Visayan Electric Co., in a press statement on Tuesday, July 16, announced that its residential consumers will see an increase of P3.56 per kilowatt hour (kWh), bringing the total rate to P13.27/kWh for their July to August billing.
“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,” reads a portion of the press statement.
The electric utility said the adjustment in rates would mean that residential customers who consume at least 200 kWh per month will face an additional charge of P712 on their next bill.
Staggered WESM payables
The Energy Regulatory Commission (ERC) released last May an order that implements a four-month staggered payment for power purchases made by distribution utilities, like Visayan Electric Co., from WESM in May.
Visayan Electric said this caused an “artificially” low rate for the June to July billing cycle since only the first installment of the WESM payables for the month of May was collected.
Raul Lucero, Visayan Electric’s president and chief operating officer, said, “This four-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.”
He added that while electricity rates in WESM are unpredictable and could potentially decrease, the staggered payment is assured, and thus conserving power is essential to manage their consumption
In addition to energy conservation, Lucero also encouraged consumers to maintain electrical safety during the rainy season and be prepared to switch off their breakers and evacuate, especially in flood-prone areas. / Fred Leander Baldos, VSU Devcomm intern