Residential electricity rate under Negros Electric and Power Corp. (Negros Power) increased in January 2026, driven largely by higher power supply costs and other industry-wide charges affecting the Visayas grid.
In an advisory, Negros Power said the average residential rate rose to P13.1076 per kilowatt-hour (kWh), up by P1.0635/kWh from the December 2025 rate of P12.0441/kWh.
The primary factor behind the rate hike was the increase in power supply costs sourced from the Wholesale Electricity Spot Market (WESM), where distribution utilities purchase electricity when contracted supply is insufficient.
For the January billing period, WESM prices climbed from P6.0405/kWh to P7.5031/kWh, an increase of P1.4626/kWh.
Negros Power attributed the higher prices to tighter power supply conditions in the Visayas, compounded by limitations in the high-voltage direct current interconnection between Mindanao and the Visayas, which constrained the transfer of additional power to the region.
Several major baseload power plants in the Visayas also operated at reduced capacity during the month, further tightening supply. These included the Leyte “A” Geothermal Power Plant, which was reduced by up to 306 megawatts for 27 days; Therma Visayas, Inc., reduced by up to 169 megawatts for 25 days; Tongonan Geothermal Power Plant, reduced by up to 79.5 megawatts for 27 days; and Palm Concepcion Power Corp., reduced by up to 60 megawatts for eight days.
As a result of these supply constraints, the generation charge increased by P1.0427/kWh for the period.
Partially offsetting the increase was a slight reduction in transmission charges, following lower ancillary service charges, which declined from P62.9213 per kilowatt (kW) to P57.3198/kW. This translated to a decrease of approximately P0.1857/kWh in transmission charges for residential consumers.
Additional adjustments also took effect in January following approvals from the Energy Regulatory Commission (ERC).
These include the Green Energy Auction Allowance of P0.0371/kWh under ERC Case No. 2025-127RC, and the new Feed-in Tariff Allowance of P0.2011/kWh under ERC Case No. 2025-150RC.
Negros Power emphasized that the rate adjustments apply to all electricity consumers across the Visayas and are beyond the control of distribution utilities.
“These charges are 100 percent pass-through costs arising from market conditions and regulatory approvals,” the utility said, adding that it remains committed to transparency and to keeping consumers informed about factors affecting electricity rates. ||
