Visayas electricity rates climb as supply costs surge

By Francis Allan L. Angelo and Dolly Yasa

Electricity consumers in Iloilo City and Central Negros will face higher bills this September as distribution utilities MORE Electric and Power Corporation (MORE Power) and Negros Power announced rate increases driven by supply shortages and rising market costs.

MORE Power said its residential rate rose to PHP 12.44 per kilowatt-hour (kWh), while commercial customers will pay PHP 11.76/kWh.

The company reported its generation charge jumped to PHP 6.1437/kWh from PHP 4.9128/kWh, citing higher spot market prices after the National Grid Corporation of the Philippines (NGCP) issued yellow alerts.

In Bacolod City, Negros Power said its average residential rate climbed to PHP 12.2775/kWh, up PHP 0.7715 from August’s PHP 11.5060/kWh, while commercial customers will be charged PHP 12.38/kWh.

The utility explained that thinning reserves in the Visayas grid last month triggered price surges in the Wholesale Electricity Spot Market (WESM), where distributors source part of their supply.

In addition to generation costs, Negros Power said delivery and ancillary service fees also increased, although its Distribution, Supply, and Metering (DSM) charge remains unchanged at PHP 0.89/kWh.

Both utilities stressed that the hikes stem from external factors such as grid alerts and volatile market conditions that directly push up generation, transmission, and reserve market charges.

Yellow alerts, issued when power reserves fall below safe operating levels, were a key driver of the higher market prices passed on to end users.

“We continue to work hard to deliver reliable, safe, and affordable electric service,” MORE Power said in a statement.

Negros Power pledged transparency and empathy, assuring customers it will “do its best to cushion the impact” of rising costs while pursuing more stable long-term supply agreements.

The utility added, “We understand how important affordable electricity is for every household and business, and we know that any increase in your monthly bill can be a burden.”

For households and small businesses across Iloilo City and Central Negros, the adjustments are expected to strain already tight budgets.

Energy analysts warn that other Visayan distribution utilities may also raise rates in the coming weeks as the region struggles to maintain affordable and stable power supply.