Connect with us

Hi, what are you looking for?


ERC readies report on Visayan Electric’s alleged high power rates

By Angelica Y. Yang

THE technical staff of the Energy Regulatory Commission (ERC) is set to complete by February its evaluation on whether the biggest power provider in the Visayas had charged “high electricity rates” in the area as alleged by a business group, an official of the agency said on Tuesday.

Floresinda G. Baldo-Digal, ERC commissioner-in-charge, said the regulator’s technical team is evaluating the letter sent by Visayan Electric Co., Inc. to explain its side.

“The explanation is currently under evaluation by our technical staff, they are targeting to present their recommendation to the Commission by next month,” Ms. Digal told BusinessWorld in a text message.

On Monday, Visayan Electric said it had responded to the ERC’s letter, but declined to disclose details of its explanation.

“Visayan Electric has already submitted its explanation to the ERC and we are waiting for ERC’s evaluation,” the company told BusinessWorld in an e-mailed response.

“We assure our customers that Visayan Electric is transparent in its dealings and processes and that the electric utility is committed to providing reasonably priced power in its franchise area,” it added.

On Jan, 4, the ERC directed Visayan Electric, the country’s second largest power utility, to explain why it bought power from Cebu Private Power Corp. at an average of P35.3852 per kilowatt-hour (kWh) for the January-October period.

The power generation rate hit as high as P1,470.90/kWh for September last year, it added.

In contrast, the utility’s average generation rate for Green Core Geothermal, Inc. was at P4.8922/kWh for the 10-month period, while those for Cebu Energy Development Corp. and Therma Visayas, Inc. were at P5.6821/kWh and P5.5584/kWh, respectively, the ERC said.

The regulator also said that at the Wholesale Electricity Spot Market, the average generation rate during the period was at P2.5946/kWh.

The ERC’s letter, a copy of which was obtained by BusinessWorld, directed Visayan Electric to explain the power firm’s generation charges during the subject billing period in relation to the least-cost principle called for under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA).

The law mandates distribution utilities to supply power at the “least cost to its captive market, subject to the collection of retail rate.”

The ERC’s letter was addressed to Raul C. Lucero, president and chief operating officer of Visayan Electric.

It was prompted by a letter from the Central Visayas Regional Development Council, which endorsed to the ERC a letter from the Cebu Chamber of Commerce and Industry regarding the high electricity rates charged by Visayan Electric and alleged violation of Section 45 of EPIRA.

Earlier, Senator Sherwin T. Gatchalian said a refund should be in order if Visayan Electric’s alleged violations are proven.

“If it will be proven that [Visayan Electric’s] collection is not justifiable, they should return the excess to the consumers. It’s the mandate of the ERC to protect the interest of the public,” he said in a press release last week.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Headline inflation stood at 4% in July, the government reported on Thursday. — PHILIPPINE STAR/ MICHAEL VARCAS PHILIPPINE INFLATION eased to a seven-month low...


ALL COMPANIES included in the Philippine Stock Exchange (PSE) indices will be required to raise their public float level to 20% by December 2022,...


THE PHILIPPINES should focus on diversifying its economy to produce high-quality jobs and more competitive products, according to the United Nations in the Philippines....


SAN Miguel Corp. (SMC) returned to profitability to finish the first half with a net income of P29.57 billion, reversing last year’s P3.99-billion loss,...


AYALA-LED AC Energy Corp. reported an attributable net income of P1.42 billion in the second quarter, down by 28% from P1.97 billion year on...


PLDT, Inc. saw its attributable net income for the second quarter grow 10.9% to P7.1 billion, as high demand for data and broadband continued....

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...


US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...


THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!