Possible fuel price hikes could push up electricity rates, DOE warns

Local

ELECTRICITY rates could increase in the coming months if global fuel prices continue to rise, prompting the Department of Energy (DOE) to urge consumers to conserve electricity and help reduce the need to dispatch more expensive power plants.

DOE Undersecretary Rowena Guevara said while wholesale electricity prices have generally eased in July, power rates remain vulnerable to increases in fuel costs, particularly for plants that use imported fossil fuels.

"If fuel prices increase, this could eventually be reflected in electricity rates," Guevara said in an online press briefing on Monday, July 20, 2026.

"We should first use the cheaper fuel before using the more expensive fuel. We also encourage the public to please conserve energy so that we don't have to dispatch the higher-priced power plants," she added.

Guevara also reported that wholesale electricity prices in the WESM generally trended downward in July.

In Luzon, average weekly prices fell from P9.10/kWh during the first week to P7.16/kWh in the second week before further declining to P4.98/kWh at the start of the third week.

In the Visayas, recurring yellow alerts kept prices elevated at around P14.00/kWh during the first two weeks of July before easing to P7.17/kWh in the third week.

Mindanao saw prices rise from P11.71/kWh to P14.64/kWh during the first two weeks before dropping to P7.35/kWh at the beginning of the third week.

System-wide, wholesale electricity prices declined from P10.25/kWh in the first week to P9.36/kWh in the second week.

Following market operator price adjustments, the final June 2026 load-weighted average WESM prices stood at P7.60/kWh for Luzon, P13.27/kWh for the Visayas, and P14.80/kWh for Mindanao.

The DOE noted that July registered generally lower wholesale electricity prices compared to June across all major grids, with Mindanao posting the most significant decline of at least P10.98/kWh.

Despite the improving wholesale market conditions, Guevara emphasized that prudent energy use remains essential in helping stabilize electricity costs and minimizing the need to rely on more expensive generating facilities if fuel prices climb.(MyTVCebu)