Cebu Households Face Mounting Pressure from Electricity Rate Increases
Families across Cebu are experiencing a significant tightening of their budgets this month, as major electricity distributors have announced a new round of rate hikes. The Cebu Electricity Rights Advocates (Cera) has issued a stark warning, highlighting that these escalating costs are placing a severe financial strain on low- and middle-income households throughout the province.
Understanding the Spike in Electricity Bills
Cera reported on Monday, February 16, 2026, that rates have surged for customers served by both the Visayan Electric Company and the Cebu Electric Cooperatives, which include Cebeco I, II, and III. For those under Cebeco, the average rate has now reached P13.37 per kilowatt-hour (kWh), following recent increases of P1.30/kWh and P0.33/kWh. Meanwhile, Visayan Electric has raised its rate to P12.79/kWh, marking an increase of P0.35/kWh.
Nathaniel Chua, convenor of Cera, emphasized the need for balance, stating, "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."
The Growing Financial Burden on Local Families
The group estimates that electricity expenses for homes in Cebu have risen by 15 to 20 percent in early 2026, a rate that outpaces increases in other daily essentials such as food and water. Cera attributes this surge to two primary factors:
- High Demand: Cebu's power needs are growing by approximately 150 megawatts annually.
- Market Prices: To meet this demand, distributors often purchase additional power from the Wholesale Electricity Spot Market (WESM), where prices can spike dramatically during power plant outages or peak usage times.
Challenges with Aging Infrastructure
Beyond market dynamics, Cera points to "system inefficiencies" as a contributing factor. In rural areas served by Cebeco, aging equipment leads to "technical losses"—essentially wasted electricity that still inflates customer bills. The group also alleges that high administrative costs and a slow pace of innovation, described as "bureaucratic inertia," have delayed crucial upgrades in these regions.
How Cebu's Rates Compare to Other Philippine Cities
Cebu currently pays more for electricity than several other major urban centers in the Philippines:
- Davao City: P11.7187/kWh
- Iloilo City: Approximately P12.66/kWh
- Metro Manila: P13.1734/kWh
- Cebu (Cebeco areas): P13.37/kWh
Advocates Push for Reforms and Transparency
To help stabilize costs for consumers, Cera is calling for a transparent review of Cebeco's power distribution methods and a reassessment of supply contracts for all distributors. They are also urging a suspension of "under-recovery" collections until service improvements are made. Chua stressed, "Operational excellence is the best hedge against inflation," encouraging regulators and utilities to collaborate in making electricity more affordable.
As Cebu continues to grow, consumer groups are advocating for faster reforms to protect everyday families from unpredictable and rising energy costs, emphasizing the need for sustainable solutions in the face of ongoing economic pressures.
