Electric cooperatives dominate list of highest July power rates

By Francis Allan L. Angelo

Electric cooperatives accounted for most of the 20 distribution utilities with the highest residential electricity rates in July, led by Biliran Electric Cooperative, Inc. (BILECO) at PHP 18.34 per kilowatt-hour, according to the latest analysis by the Institute for Climate and Sustainable Cities released on August 6, 2026.

Northern Samar Electric Cooperative, Inc. (NORSAMELCO) followed at PHP 16.49 per kilowatt-hour and Aurora Electric Cooperative, Inc. (AURELCO) at PHP 16.33 per kilowatt-hour, both well above the PHP 12.88 per kilowatt-hour average across the 102 on-grid distribution utilities and electric cooperatives with available data.

Among those 20 highest-priced distribution utilities and electric cooperatives, the Feed-in-Tariff Allowance accounted for only 1.10 percent to 1.42 percent of the total electricity rate, the Institute for Climate and Sustainable Cities found.

Generation costs, not the Feed-in-Tariff Allowance or the Green Energy Auction Allowance, continue to account for the largest share of consumers’ monthly electricity bills.

The institute’s analysis of data from PRESYO-PH found that generation charges accounted for an average of 57 percent of residential electricity rates in July, equivalent to PHP 7.28 per kilowatt-hour, a 10 percent spike from June.

The average residential electricity rate increased by 4 percent to PHP 12.88 per kilowatt-hour, with 82 percent of the utilities recording higher rates than the previous month.

The analysis further found that even with the projected additional PHP 0.1348 per kilowatt-hour Feed-in-Tariff Allowance charge, the allowance would still account for only 1.82 percent to 2.35 percent of the total residential electricity rate among the 20 highest-priced distribution utilities and electric cooperatives.

That finding underscores that the Feed-in-Tariff Allowance remains only a small share of residential electricity rates, even in the areas with the country’s highest power prices.

Two Western Visayas cooperatives appear on the list: the electric cooperatives Iloilo Electric Cooperative (ILECO) 1 at PHP 14.53 per kilowatt-hour and Guimaras Electric Cooperative (GUIMELCO) at PHP 14.44 per kilowatt-hour.

Electricity bills are instead driven primarily by generation charges, which are influenced by fuel prices, wholesale electricity market conditions, and power supply procurement costs.

Because many electricity providers still rely heavily on imported fossil fuels, electricity prices remain vulnerable to fluctuations in global fuel markets, and these costs are automatically passed on to consumers.

This became particularly evident during the 2022 global energy crisis, when surging international coal and liquefied natural gas prices increased generation charges.

During that period, the Feed-in-Tariff Allowance and renewable energy support charges remained relatively stable and contributed only marginally to overall electricity price increases.

“Electricity bills will remain vulnerable as long as the country remains heavily dependent on imported fossil fuels. The data points to a structural problem that generation costs are driving electricity prices, and the most durable solution is a more diversified energy mix anchored on indigenous renewable energy,” shared the institute’s Energy Transition Advisor Alberto Dalusung III.

The Feed-in Tariffs program and the Green Energy Auction Program were established to accelerate renewable energy development, encourage competition, and expand the country’s electricity supply options.

Projects developed under these mechanisms have helped grow the renewable energy market by increasing renewable energy supply and strengthening competition in electricity generation.

Although projects supported by the Feed-in-Tariff Allowance and the Green Energy Auction Program represent only a portion of the country’s renewable energy portfolio, their benefits extend beyond the projects themselves.

The institute’s analysis indicates that these projects have contributed to lower wholesale electricity prices during periods of high renewable energy output.

The analysis found that increased renewable energy availability reduced Wholesale Electricity Spot Market settlement prices by roughly 10 percent during peak renewable output periods in 2025.

These findings suggest that renewable energy incentive mechanisms should be assessed not only on the charges they impose, but also on the long-term economic value they create for consumers and the power system.

While these benefits may not be immediately visible as separate line items on consumers’ electricity bills, they contribute to a more competitive and resilient power system.

Continued expansion of indigenous renewable energy can help reduce dependence on imported fossil fuels, lessen exposure to global fuel price volatility, and support more stable electricity costs over time.

A growing renewable energy market can create a more competitive electricity supply, unlock new opportunities for consumers and businesses, and support a power system that is better equipped to meet the country’s future energy needs.

PRESYO-PH is the institute’s public electricity rate and energy supply monitoring platform, which tracks residential electricity rates across distribution utilities and electric cooperatives nationwide to help consumers, local governments, researchers, and policymakers better understand the factors driving electricity prices in the Philippines.

The Institute for Climate and Sustainable Cities is a Philippine-based non-governmental organization that advances climate, energy, and low-carbon solutions to enable fair and climate-resilient development at the national and international levels.