CEBU CITY — Residential consumers in Metro Cebu will have to pay more for electricity as power rates will go up by P0.95 per kilowatt-hour (kWh) for the September to October billing cycle. Utility company Visayan Electric said the adjustment brings the residential rate in Metro Cebu to P13.52 per kWh from P12.57 per kWh. For an average household consuming 200 kWh per month, this means an additional P190 on their monthly bill. In a statement, the power company said the increase was primarily driven by higher transmission charges from the National Grid Corp. of the Philippines (NGCP) and the final installment of deferred payments for power purchases from the Wholesale Electricity Spot Market (WESM) made last May. The rise in NGCP transmission charges follows the resumption of the Ancillary Services-Reserve Market (AS-RM), which provides backup power from qualified generating plants to ensure a stable electricity supply. Visayan Electric President and COO Raul Lucero acknowledged the necessity of paying more for NGCP's ancillary services, emphasizing their role in maintaining grid stability and preventing power shortages. Despite the current rate hike, Lucero expressed hope for future reductions, citing the completion of deferred WESM payments and the onset of cooler weather in the coming months as potential factors in easing rates. As electricity costs rise, consumers have started taking measures to manage their expenses. Maricel Laurente, a single mother of three from Barangay T. Padilla, said that she limits her children's television time from five hours to just two each night. Similarly, Aldrin Jimenez, a college student renting a room in Barangay Pahina Central, said he now moderates the use of his rice cooker, opting to buy cooked rice from a nearby "karinderia" (small cafeteria or restaurant) and consume ready-to-eat canned goods to minimize electricity costs. He mentioned paying an average of P500 per month for electricity, which puts a strain on his student budget. NGCP confirmed that the rise in transmission charges resulted from the AS-RM's resumption, which took effect on August 5. While transmission wheeling rates decreased by 5.5 percent from July to August, AS rates surged by 125.92 percent in August. The NGCP clarified that consumers see increased transmission charges due to regulatory compliance. The company contracts 50 percent of ancillary services through firm agreements and the remaining 50 percent through the AS-RM, stressing that it does not profit from these services as they are pass-through costs that benefit generating companies and grid stabilization.
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