WE IN the Visayas are facing a silent yet powerful crisis.
This June, electricity rates have surged by more than P2 per kilowatt-hour (kWh).
For example, if Juan and Perla consume an average of 100 kWh per month, they will have to pay an additional P200 on top of their usual electricity bill. For many families, P200 is already enough to buy a kilo of rice and a kilo of fish or help cover other basic necessities.
But what about households that consume more than 100 kWh per month? The burden becomes even heavier.
The more than P2/kWh increase applies only to June. What about July and August? Rates could climb even higher. Let us hope these increases do not continue into the “Ber” months.
The reality is that no one in the Visayas is exempt from spiraling electricity rates. Whether we like it or not, all power distribution utilities (DUs) in the region have no choice but to raise their charges because generation costs have also increased by more than P2 per kWh.
The mathematics is straightforward. Generation charges rose by P2.1809/kWh — from P6.4385/kWh in May to P8.6194/kWh in June. Since generation charges are considered pass-through costs in the Philippine power industry, DUs are legally required to pass these increases on to consumers.
And so, it is the consumers who ultimately bear the burden.
HUGE HIKE
Among the first to announce a significant increase in electricity rates this June was Negros Power in Bacolod City.
On June 15, Engr. Christian John Villena, manager of Negros Power’s Energy Sourcing, disclosed that the company’s residential rate increased by P2.4609/kWh, from P11.3808/kWh in May to P13.8417/kWh in June.
Villena acknowledged that this was the largest increase recorded by Negros Power since it took over power distribution operations from the Central Negros Electric Cooperative (CENECO) through a joint venture agreement in July 2024.
During the press conference, Villena appeared fully aware of the burden the increase could impose on more than 200,000 consumers in Bacolod, Bago, Talisay, Silay, Murcia and Don Salvador Benedicto.
He expressed hope that the Energy Regulatory Commission (ERC) would step in and address the emerging power crisis. According to him, predictive analytics suggest electricity rate increases could reach P3 to P4 per kWh — or even higher — in the coming months.
Gosh! How?
ANATOMY OF A CRISIS
The Visayas grid is currently in poor condition. The available power supply is insufficient to meet demand.
According to the National Grid Corporation of the Philippines (NGCP), the Visayas grid lacked 947.8 megawatts of power as of June 17. This is one reason yellow alerts are declared from time to time.
A yellow alert means power reserves are thin, increasing the risk of supply shortages and outages. As a result, rotating load shedding and intermittent brownouts have become increasingly common across the Visayas.
A major reason is that 27 power plants in the region are currently offline, most of them coal-fired facilities. NGCP data showed that 10 plants suffered forced outages this June alone, while others have remained shut down for months — or even years.
The result is a power system struggling to keep up with demand.
REAL OR RHETORIC?
Still, many are asking: Is the story about 27 power plants being offline a genuine crisis — or merely a convenient narrative?
NGCP’s data is factual and therefore credible. Yet, drawing from my years in the power industry from 2012 to 2020, there are many legitimate reasons why power plants shut down. These include extreme weather conditions, scheduled maintenance, retrofitting, equipment failures and transmission issues.
However, if some facilities have remained offline for years, that may indicate they are already beyond rehabilitation and no longer fit for modern power-generation requirements.
WILD THOUGHT
Others who closely follow the energy sector have raised a more provocative theory.
A former senior energy official once explained to me how certain industry practices could allegedly contribute to higher electricity prices. According to this theory, power plants in a particular region could be taken offline, intentionally or otherwise, resulting in tighter supply and greater dependence on the Wholesale Electricity Spot Market (WESM).
WESM was created to provide a competitive, efficient and transparent marketplace for electricity. Critics argue, however, that it does not always serve that purpose.
Notably, amid the current supply situation in the Visayas, WESM prices reportedly surged from about P5 per kWh to P10.20 per kWh.
Still, I am not prepared to embrace allegations of collusion among power industry officials and players. I reserve judgment until solid evidence emerges to support such a serious claim.
‘RE’ SOLUTION
If many of the Visayas’ power plants remain dependent on fossil fuels and are already aging, could renewable energy provide part of the solution?
Negros is gradually positioning itself as a renewable-energy hub. Cadiz City hosts one of the largest solar farms in Southeast Asia. Bago City is preparing to host a 150-megawatt wind power project. Meanwhile, First Gen-Energy Development Corporation has earmarked P25 billion for the expansion of the Southern Negros Geothermal Project in Valencia, Negros Oriental.
These developments paint a clearer picture: Negros still needs two to three modern, reliable baseload power plants—whether powered by conventional fuels or renewable energy.
Negros continues to grow economically, but repeatedly finding itself trapped in power crises is both frustrating and counterproductive.
In a nutshell, what is the use of having modern transmission infrastructure and capable distribution utilities if many power plants remain old, unreliable or inadequate?
Unfortunately, it is consumers who continue to pay through the nose every time electricity prices surge. For many, this feels like a continuing injustice.
As in, lagi na lang? Nakapagtataka!/PN
