Visayan Electric Keeps May Rate Increase Moderate Amid Fuel Cost Pressures and Grid Alerts

Visayan Electric Company Inc. (VECO) announced a residential electricity rate of Php 12.88 per kWh for May 2026, a Php 0.31/kWh increase from April, as higher generation costs driven by global fuel prices and tight Visayas Grid supply conditions affected power rates.

The upward adjustment is largely attributed to an increase in the generation rate, which was impacted by higher fuel prices globally. Additionally, the recent series of Red and Yellow Alerts declarations by the National Grid Corporation of the Philippines (NGCP) in the Visayas Grid—caused by thin operating reserves and high system demand—has created a challenging operational landscape for all providers.

“Our priority has always been to protect our customers from sudden and significant increases, even as we face these external market volatilities and grid stability challenges," said Mark Anthony B. Kindica, Visayan Electric’s President and General Manager. “While fuel prices and inflation remain beyond our control, we continue optimizing our supply portfolio and operations to help cushion customers from sharper increases.”

In response to the NGCP's grid alerts, Visayan Electric has been proactive in coordinating closely with power generators and the Department of Energy (DOE). The utility has implemented strategic operational measures, such as its Interruptible Load Program (ILP), to ensure that service remains reliable and that Cebu’s power needs are prioritized despite the thin reserves currently affecting the Visayas Grid.

Visayan Electric encourages its customers to remain mindful of their energy consumption, especially during peak hours. Practicing energy efficiency continues to be the most effective strategy for households to manage their monthly expenses during periods of high demand and global energy uncertainty.