Visayas, Mindanao electricity rates to decrease with ERC's Secondary Price Cap

Reduced generation charges are anticipated in the Visayas and Mindanao regions following the Energy Regulatory Commission's (ERC) implementation of a Secondary Price Cap (SPC), according to Department of Energy (DOE) Secretary Sharon Garin on Tuesday. Garin stated during a press briefing that the SPC has effectively lowered Wholesale Electricity Spot Market (WESM) prices in both regions. In Visayas, prices are projected to drop from P18.59 per kilowatt hour to P8.47 per kilowatt hour, marking a reduction of approximately 45% due to the ERC's price cap in regional markets. Meanwhile, Mindanao saw its prices decrease to P8.69 per kilowatt hour, a reduction of 56%. Garin acknowledged that these prices remain higher than pre-incident levels, as the Visayas Grid has been under pressure due to malfunctions in several power plants, with at least two undergoing restoration. "This is higher compared to what happened, but the price is more than a 50% decrease from what is being traded in the market now," she noted. This move is expected to provide some relief to Filipino households, particularly those in the affected regions, who have been grappling with high electricity costs. Stable and affordable electricity is crucial for household budgets and overall economic activity in the Philippines.