Consumer advocacy group Cebu Electricity Rights Advocates (CERA) warned that the latest adjustments by major power distributors in Cebu would further strain household budgets across the province.
In a statement, CERA convenor Nathaniel Chua said three electric cooperatives recently implemented power rate increases: Cebu Electric Cooperative I, Cebu Electric Cooperative II, and Cebu Electric Cooperative III.
Their rates now average P13.37 per kilowatt-hour (kWh), reflecting increases of P1.30/kWh and P0.33/kWh in recent billing cycles.
The Visayan Electric Co. adjusted its rate to P12.79/kWh, reflecting an increase of P0.35/kWh.
Cebeco I covers southern towns, while Cebeco III handles the northern part. Cebeco II, on the other hand, services midwest Cebu.
Visayan Electric, the second-largest privately owned electric utility in the Philippines, serves the heart of Metro Cebu, covering a franchise area of approximately 674 square kilometers with a population of over 2.6 million.
“While we recognize the complexities of the energy market, the financial impact on Cebuano households must be balanced with more aggressive utility-side cost-saving measures,” Chua said.
CERA estimates that household electricity expenses rose by 15 to 20 percent in early 2026, outpacing increases in many other basic commodities.
Reforms
The group warned that sustained rate hikes could significantly strain average family budgets, particularly among low- and middle-income households.
To stabilize energy costs in the region, CERA called for a transparent review of Cebeco’s distribution efficiency to identify and reduce technical losses.
There should also be a reassessment of Power Supply Agreements (PSAs) by both Visayan Electric and Cebeco to secure more stable, lower-cost energy sources.
The group also called for the suspension of all “under-recovery” collections until service reliability benchmarks are achieved.
“Operational excellence is the best hedge against inflation,” Chua said, emphasizing the need for a collaborative approach among utilities, regulators, and consumers to ensure affordable and reliable electricity for Cebu.
As rate adjustments take effect, consumer groups are urging power distributors to prioritize efficiency reforms and long-term supply stability to cushion households from further volatility in the months ahead.
Price surge factors
According to CERA, the current price surge stems from both external and internal factors.
Cebu’s electricity demand is reportedly growing by about 150 megawatts annually, forcing Cebeco to source additional supply from the Wholesale Electricity Spot Market (WESM), where prices are highly volatile.
When demand peaks or power plants experience outages, distributors are compelled to purchase electricity at significantly higher spot market rates.
CERA noted that heavy reliance on WESM leaves consumers vulnerable to sudden price spikes that could otherwise be mitigated through more diversified and stable power supply agreements.
The consumer group also pointed to aging distribution systems in several cooperative areas, which contribute to higher technical losses and inflate consumers’ final bills.
CERA cited reports indicating that some cooperative districts continue to post system loss percentages near the upper limit allowed by regulators.
‘Bureaucratic inertia’
While Visayan Electric maintains a relatively modern urban grid, it still faces the challenge of optimizing bilateral power contracts to ensure long-term affordability and reliability.
In rural areas served by Cebeco, CERA said operational inefficiencies, high administrative overhead, and “bureaucratic inertia” slow innovation and responsiveness.
“Unlike private utilities with greater access to capital for modernization, electric cooperatives often face structural constraints that hamper rapid upgrades and efficiency improvements,” CERA said. | Ed: Corrie S. Narisma
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