Yellow alerts in August may push power rates higher

By Francis Allan L. Angelo

Consumers in Iloilo and across the Visayas may see a spike in electricity rates this September following a series of Yellow Alert Status advisories from the National Grid Corporation of the Philippines (NGCP) last August 2025.

Between August 1 and 6, NGCP issued four yellow alert advisories as power supply margins dropped dangerously low.

This situation affects not just Iloilo City but the entire Visayas region, with energy supply constraints putting pressure on wholesale electricity prices.

According to Niel Parcon, Vice President for Corporate Energy Sourcing and Regulatory Affairs of MORE Power, a yellow alert is declared when the power supply margin falls below the capacity of the largest generating unit connected to the grid.

This signals that available power may not be sufficient to meet demand securely, especially during peak consumption.

“This means if the supply is thin, the cost of power in the spot market increases,” Parcon explained.

As demand surged last month, power supply shortages triggered elevated market prices, prompting local officials to advocate for greater investment in renewable energy infrastructure.

“Unfortunately last month, starting August 1, nagsaka ang presyo sang aton nga kuryente, which is the result sang pagkulang sang supply sang aton sa market sa bilog nga Pilipinas,” said Parcon.

“Actually indi lang ni sa Visayas, indi lang ni sa bilog nga Iloilo City, bilog ini nga Pilipinas, unfortunately ang hard hit ang Visayas and kapin pa sa Panay kay ara kita sa tail end sang transmission line network sang NGCP,” he added.

Due to the limited supply within the region, the Visayas grid has had to source electricity from Luzon, Negros, and Mindanao to sustain demand in Panay Island.

NGCP reported it had 2,528 megawatts of available supply versus a peak demand of 2,475 megawatts, leaving a narrow 53-megawatt margin, which experts consider critical.

The Department of Energy confirmed that 14 power generation facilities—including coal-fired plants—went offline in August, compounding the shortfall.

“Ginahambal ta nga tungod sina, nagsaka ang presyo sang kuryente kay ti syempre nagkulang na,” Parcon said.

“Suppliers market, and tanan nga naga-bid sa aton nga merkado nagapataas-taas na presyo kay ti bal-an nila kulang,” he continued.

“So typical, amu na sa law of supply and demand scenario, very different na sya sa previous months nga tama man kadako sang aton nga supply,” he said.

MORE Power, Iloilo City’s sole distribution utility, purchases electricity from generation plants and resells it to end users.

Parcon emphasized that one long-term solution is for MORE Power to establish its own power generation facilities to ensure a more stable and cost-effective energy supply.

He added that despite these challenges, MORE Power is committed to maintaining the lowest possible rates in Panay.

Parcon assured consumers that the company is closely monitoring the cost of power generation and that electricity rates are expected to stabilize in the coming billing cycles.