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Mandaue council seeks staggered VECO payments amid rate hike

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Mandaue council seeks staggered VECO payments amid rate hike

The Mandaue City Council is asking the Visayan Electric Company (VECO) to allow consumers to pay higher electricity bills in installments through December 2026 without penalties or disconnection.

The proposal, contained in a resolution authored by Councilor Jennifer del Mar, covers bills from the August and September 2026 billing cycles. The measure was approved during the council’s regular session on Monday, Sept. 21.

Del Mar said the proposal came after consumers raised concerns over higher electricity bills, which she said have disrupted household and business budgets amid existing financial pressures.

The proposed extension would give consumers additional time to settle their increased bills, with December identified as the target end of the staggered payment period.

Del Mar said the timing would also consider workers who may receive their Christmas bonuses in December, which could help them settle outstanding electricity balances.

“Mao to ni-ask ta ni VECO nga kung pwede matagaan nila ang consumers nga maka-staggered payment until December,” Del Mar said.

The council said allowing consumers to settle their bills gradually could also help prevent unpaid balances from accumulating and reduce the risk of service disconnections.

During the session, VECO Marketing and Communications Manager Erik Monsanto said the electricity rate had reached P14.96 per kilowatt-hour, up from at least P13 per kWh the previous month.

Monsanto said the rate could have reached about P17 per kWh without the deferment of some costs before the Energy Regulatory Commission (ERC).

He attributed part of the increase to limited electricity supply, which prompted VECO to source additional power from the Wholesale Electricity Spot Market (WESM).

Monsanto said WESM prices are influenced by supply and demand, with limited electricity supply potentially pushing market prices higher.

VECO, as a distribution utility, purchases electricity through WESM by bidding for power from independent power producers but does not control the market prices.

“In terms of influencing market prices, wala gyud tay control, that is above us,” Monsanto said.

He said VECO is also implementing measures to lessen the immediate impact of higher rates through payment deferment.

Under such an arrangement, the additional amount could be spread across smaller payments instead of requiring consumers to settle the entire increase at once, subject to the applicable regulatory approval.

Monsanto, however, clarified that VECO cannot independently approve the staggered payment arrangement sought by the city council.

He said the utility could instead seek approval from the ERC for a deferment arrangement.

Monsanto also said the ERC had imposed a moratorium on disconnections until October, giving consumers additional time to settle their electricity bills.

He encouraged consumers to use the period to make partial payments rather than allow their outstanding balances to accumulate.

“Let’s use this opportunity to pay, even little by little hantod ma-zero-out atong bill,” Monsanto said.

VECO also urged consumers to reduce electricity consumption through basic energy-saving measures, including unplugging appliances when not in use and turning off lights in unoccupied rooms.

Photo courtesy of PNA


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