Razon's Primelectric cites cheaper supply for lower Visayas rates

Insider Spotlight

• Primelectric utilities posted some of the lowest power rates in the Visayas
• Bohol Light cut residential rates to P10.5081 per kWh in May
• MORE Power and Negros Power also rolled out lower electricity charges
• Company says cheaper contracts and market efficiencies cushioned fuel volatility

Enrique Razon Jr.-owned Primelectric Holdings Inc. said it is relying on cheaper power supply contracts and market efficiencies to keep electricity rates competitive across its franchise areas in the Visayas despite volatility in global fuel markets.

The company said all three of its distribution utilities in Iloilo, Negros, and Bohol provinces implemented lower electricity rates this month, making them among the lowest in the region.

Leading the reduction was Bohol Light Company Inc., which cut rates by P2.0068 per kilowatt-hour (kWh), bringing average residential electricity rates down to P10.5081 per kWh. Commercial rates also declined to P9.9291 per kWh.

The utility attributed the lower May rates to reduced generation and transmission charges, lower line rental costs, and the suspension of the GEA-ALL charge for the May and June 2026 billing periods as directed by the Energy Regulatory Commission.

Why it matters

Power distributors across the country have been grappling with higher generation costs tied to rising coal prices, foreign exchange fluctuations, and elevated import freight charges.

Roel Castro

The Primelectric chief said the priority of the Razon-owned group is to deliver more affordable electricity amid the ongoing energy crisis.

Primelectric said prudent contracting and supply procurement allowed its utilities to offset some of these pressures and pass on lower rates to consumers.

Last week, MORE Electric and Power Corp. in Iloilo lowered its residential rate to P11.8710 per kWh from P12.14 in April.

The company said the reduction was driven by a P0.26 per kWh drop in transmission charges and slightly lower system loss charges.

MORE Power added that cheaper bilateral supply contracts helped soften the impact of a P0.05 per kWh increase in generation charges caused by higher coal prices, inflation, freight costs, and currency movements.

In Negros, Negros Electric and Power Corp. posted a residential rate of P11.38 per kWh, lower by P0.8655 per kWh from April’s P12.2463 per kWh.

The company said efficient procurement from generation companies and active participation in the Wholesale Electricity Spot Market helped bring down electricity costs.

What they’re saying

“While global energy markets remain unpredictable, our priority has always been to deliver stable and more affordable electricity to the communities we serve,” Primelectric president and CEO Roel Castro said 

“These rate reductions reflect our efforts to cushion households from volatility in fuel and commodity markets.”

“We are committed to ensuring that our customers feel the benefits of efficient procurement and prudent contracting,” he added. —Daxim L. Lucas |Ed: Corrie S. Narisma