NEPC spreads cost recovery scheme to cushion rate hike

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• GILBERT P. BAYORAN

Consumers served by Negros Electric Power Corp. (Negros Power) will expect a modest increase in their electricity bills this July after the distribution utility implemented a staggered recovery scheme to cushion the impact of soaring electricity prices in the Wholesale Electricity Spot Market (WESM).

The average residential electricity rate for July 2026 was set at P14.1287 per kilowatt-hour (kWh), up by P0.2870 per kWh from P13.8417 per kWh in June.

In a statement, Negros Power said the increase was driven by higher generation costs in the WESM following a surge in electricity demand and the forced outages of several power plants.

The supply constraints prompted a series of yellow and red alerts across the Luzon and Visayas grids, tightening available power reserves and pushing market prices higher.

To minimize the immediate impact on consumers, the utility opted not to recover the full increase in WESM costs within a single billing cycle.

Instead, it introduced a six-month staggered recovery plan, allowing the remaining balance to be collected gradually over the next six months.

Under the arrangement, the immediate increase in the generation charge was limited to P0.20 per kWh, significantly reducing what could have been a much steeper adjustment for residential customers.

Commercial and industrial consumers also experienced slight increases in their electricity rates as a result of the constrained power supply.

For July 2026, residential customers will pay P14.128 per kWh, with an increase of P0.2870 from June’s P13.8417.

Low voltage customers will pay P14.0494 per kWh, up by P0.3025 from P13.7469, while high voltage customers will see their rates rise to P13.1864 per kWh, with an increase of P0.3170 from P2.8694.

Negros Power said it remains committed to mitigating the effects of volatile electricity prices through deferred collection mechanisms whenever feasible while ensuring a stable and reliable power supply for its consumers despite continuing challenges in the energy market. | GPB