RESTORED Metro Cebu consumers, who started getting stable power supply only recently following the onslaught of Typhoon Odette in December 2021, now face higher electricity bills amid soaring coal prices due to the war between Russia and Ukraine. (Photo by GRACE OBERES)
CEBU CITY, Cebu, Philippines — Electricity rates in Metro Cebu are expected to rise this month due to high fuel prices that resulted from the ongoing war between Russia and Ukraine.
Engineer Raul Lucero, president and chief operating officer of Visayan Electric, said they were projecting an increase in generation costs as demand for coal in Asia increased.
“As to how much, we still don’t know. We’re waiting for the billing statement from our suppliers,” he said.
Lucero said coal suppliers from Europe, who were heavily affected by the Russian invasion of Ukraine, were starting to source coal from Asia, particularly in Indonesia, a key supplier for coal-fired plants in the country. The Philippines imports around 75 percent of its coal requirement from Indonesia and Australia.
According to Lucero, Visayan Electric has been trying to find ways to best cushion the impact of the rise of the electricity rates on its consumers.
“Hopefully, we can manage the increase. One of the solutions we’re considering is to take advantage of the lower prices of WESM (Wholesale Electricity Spot Market) during off-peak [hours],” he said.
WESM, created under Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, is a centralized venue for buyers and sellers to trade electricity as a commodity where prices are determined based on actual demand and supply.
Visayan Electric sources its energy requirement from coal-powered plants in the Visayas grid.
Of the at least 19 coal-fired plants in the country, five are located in the Visayas. These are Toledo Power Corp. in Toledo City in southwestern Cebu province; Kepco-SPC Power Plant in the City of Naga, south Cebu; Cebu Energy Development Corp., also located in Toledo City; Aboitiz Power-owned Therma Visayas Inc. in Toledo City; and Panay Energy Development Corp. Coal Power Plant in La Paz, Iloilo City.
99-percent restored
The projected rate increase came at a time when Metro Cebu, Visayan Electric’s franchise area, was just starting to recover from the devastation wrought by Typhoon “Odette” (international name: Rai), which hit many parts of the Visayas and Mindanao in December last year.
The utility company has also just restored electricity in its franchise area, with many of their consumers having to wait for months before they could get their power back.
Lucero said that restoration of power in their franchise area was 99 percent as of Sunday.
Only at least a thousand customers in remote mountain villages have no electricity as Visayan Electric has a hard time bringing their equipment and poles to these areas.
Among those that now have electricity were the schools in Metro Cebu that were being eyed as polling centers for the May 9 elections.
Lucero said Visayan Electric had guaranteed that power would be available in polling centers three days before and after the May 9 elections.
Visayan Electric is the second largest power distributor in the Philippines with over 400,000 subscribers. It covers the cities of Cebu, Mandaue, Talisay, and Naga, and the municipalities of Minglanilla, Liloan, Consolacion, and San Fernando.
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