How Negros Power cushioned the October WESM price spike

BACOLOD CITY — Negros Power’s average residential electricity rate for October 2026 rose to PHP 14.2691 per kilowatt-hour (kWh), up PHP 0.0204 per kWh from September’s PHP 14.2487 per kWh.

The small adjustment hides a much steeper rise in wholesale power costs. Negros Power is collecting only part of that increase this month and spreading the rest over the next five months, which means consumers in its franchise area will keep paying for October’s market spike into early 2027.

For a household using 200 kWh a month, the October adjustment adds about PHP 4.08 to the bill, based on the average residential rate.

The distribution utility said its staggered payment scheme kept the overall increase minimal despite a significant rise in prices at the Wholesale Electricity Spot Market (WESM).

The WESM rate climbed from PHP 9.8812 per kWh to PHP 13.6087 per kWh, an increase of PHP 3.7275 per kWh, or about 37.7 percent.

Negros Power attributed the WESM spike mainly to higher electricity demand and the temporary unavailability of several power plants.

These conditions contributed to Yellow and Red Alerts in the Luzon and Visayas grids as available power supply became tighter.

A Yellow Alert is raised when the grid’s operating margin falls below the required contingency level. A Red Alert signals that supply is insufficient to meet demand and may lead to rotational power interruptions.

To shield consumers from the full impact of the higher costs, Negros Power did not collect the entire increase at once. Only a portion is being charged this month, and the remaining amount will be spread over the next five months.

Under this arrangement, the generation charge fell by PHP 0.5050 per kWh for October, cushioning the effect of the higher WESM prices.

Transmission charges rose by PHP 0.1411 per kWh, mainly because of slight increases in transmission and ancillary services for the reserve market.

The Universal Charge for Missionary Electrification (UCME) went up by PHP 0.0634 per kWh after the new rate of PHP 0.3397 per kWh took effect under an Energy Regulatory Commission (ERC) Order dated Oct. 2, 2026.

The adjustment relates to the National Power Corp.’s UCME, a charge collected from all electricity consumers to subsidize power generation in off-grid and remote areas that are not connected to the main grids.

Negros Power’s average rates for October 2026 are PHP 14.2691 per kWh for residential customers, PHP 14.2697 per kWh for low-voltage customers, and PHP 13.1505 per kWh for high-voltage customers.

The utility said that although WESM prices rose significantly, its staggered payment scheme lessened the immediate impact on consumers. Together with the adjustments in transmission charges and the UCME rate, these changes resulted in a residential rate increase of only PHP 0.0204 per kWh.

Negros Power took over power distribution in the former Central Negros Electric Cooperative (CENECO) franchise area, covering Bacolod City and nearby towns and cities in Negros Occidental. It is a joint venture involving Primelectric Holdings Inc., which also controls MORE Electric and Power Corp. (MORE Power), Iloilo City’s distribution utility.