VISAYAN Electric Company announced a P0.92 per kilowatt-hour (kWh) increase in its electricity rates for the September to October billing period. This pushes the overall rate to P12.51/kWh, the highest recorded in 2025, and marks the third consecutive month of rising power costs for consumers in its franchise area.
The primary driver for the increase is the high price of electricity at the Wholesale Electricity Spot Market (WESM), where distribution utilities like Visayan Electric purchase supplemental power. The price spike in August was triggered by a combination of factors that strained the region’s power supply.
Several major power plants experienced outages, reducing the amount of available electricity. This coincided with high electricity demand across the region, prompting the National Grid Corp. of the Philippines (NGCP) to issue “yellow alerts” for the Visayas Grid. A yellow alert indicates that the power supply is thin, meaning there is not enough reserve to meet unexpected demand, forcing the grid to rely on more expensive power plants to ensure a stable supply and prevent shortages.
Why does this matter
Electricity rates affect both households and businesses in Metro Cebu. For families, higher charges can influence monthly budgets, while for enterprises, increased power costs can affect operations and pricing. The latest adjustment underscores the sensitivity of local power rates to shifts in supply and market conditions.
Putting the hike in context
While the September-October billing cycle’s P0.92/kWh jump is the largest this year, it follows a volatile trend of rate fluctuations that have affected consumers throughout 2025.
The year began with rate decreases, including a P0.25/kWh reduction in January and February, followed by further drops in March and April that brought the rate down to P10.64/kWh.
However, this relief was short-lived. From April to May, rates surged by P1.14 per kWh due to rising demand and higher WESM prices.
After another brief dip between May and July, rates have been on a steady upward climb. The price went up by P0.24/kWh from July to August, and again by P0.33/kWh from August to September, leading to this latest and most significant increase.
What this means to a consumer’s bill
The immediate and most direct impact is a higher electricity bill for households.
For a typical residential household consuming an average of 200 kWh per month, the new rate will translate to an additional P184 on their next bill. This added financial pressure comes as consumers are already navigating various economic challenges, making the increase a significant concern for household budgets.
What we don’t know yet
Whether rates will continue to rise in the last quarter of 2025 remains uncertain. Visayan Electric said market fluctuations and supply conditions make electricity prices unpredictable. For now, the September–October billing cycle reflects the highest rate level so far this year.
What’s next
Looking ahead, Visayan Electric has cautioned that the power sector remains volatile, largely driven by unpredictable global market fluctuations. When asked about potential rate changes in the final quarter of 2025, the company emphasized that while it cannot control these external cost drivers, consumers can take steps to manage their own usage to avoid financial strain.
In a statement, Visayan Electric president and general manager Mark Kindica urged customers to be proactive.
“We encourage everyone to be mindful of their energy use, especially during this cooler season when it’s easier to cut back on appliances like air conditioners and fans,” he said.
The utility also issued a public safety advisory, reminding consumers to be extra cautious during the rainy season, as flooding can significantly increase the risk of electricity-related accidents. The company stressed the importance of adhering to safety guidelines to protect lives and property during inclement weather. / DPC