Regional Price Cap Saves Negros Consumers From a Bigger September Power Rate Hike

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Regional Price Cap Saves Negros Consumers From a Bigger September Power Rate Hike

Electricity consumers of Negros Power will see a slight decrease in their September 2026 residential rate, following the recalculation of Wholesale Electricity Spot Market (WESM) charges under the Regional Secondary Price Cap (SPC).

Negros Electric and Power Corp. (Negros Power) Vice President and Chief Operating Officer Engr. Joe-Mel S. Zaporteza announced the adjustment during a press briefing at the company’s Bacolod office on Tuesday, September 22, 2026.

The residential electricity rate for September is ₱14.2487 per kilowatt-hour (kWh), slightly lower than the ₱14.2787/kWh recorded in August.

This means a reduction of about ₱0.03 per kWh.

At first glance, the decrease may appear small. However, Zaporteza explained that the rate would have been considerably higher without the Regional Secondary Price Cap implemented by the Energy Regulatory Commission (ERC).

Without the intervention, the September rate would have reached approximately ₱17.8337/kWh—about ₱3.55/kWh higher than the August rate.

What is the Regional Secondary Price Cap?

The Regional Secondary Price Cap is a mechanism used to limit exceptionally high prices in the Wholesale Electricity Spot Market, or WESM.

WESM is the market where electricity is traded when power requirements cannot be fully covered by contracted power supplies.

The ERC directed the Independent Electricity Market Operator of the Philippines (IEMOP) to recalculate the August 2026 WESM charges using the Regional SPC, particularly in response to high electricity prices experienced in the Visayas and Mindanao.

The recalculation significantly lowered the average August WESM price in the Visayas from ₱18.59/kWh to ₱8.47/kWh, equivalent to about a 54-percent reduction in the WESM component.

In Mindanao, the average WESM price was reduced from ₱19.56/kWh to ₱8.69/kWh, or about 56 percent.

But the 54% does NOT mean a 54% reduction in your electricity bill

This is an important distinction for consumers.

The 54-percent reduction applies to the affected WESM price, not to the customer’s entire electricity bill.

A consumer’s bill consists of several components. Power may also come from Power Supply Agreements (PSAs), whose prices are based on contracts approved by the ERC.

Therefore, the effect of the Regional SPC on the final household bill is much smaller than 54 percent.

Why did the adjustment appear in September bills?

The recalculated WESM charges for August were incorporated into the September customer bills covering the August 16 to September 16 billing period.

This means the Regional SPC adjustment is already reflected in the rate consumers are seeing this month.

Zaporteza also explained that WESM prices can still move up or down in the coming months, depending largely on electricity supply conditions.

What does this mean for consumers?

For an ordinary household, the most important point is simple:

The Regional Secondary Price Cap helped prevent a much larger increase in electricity rates.

Instead of the September residential rate reaching approximately ₱17.83/kWh, the rate was ₱14.2487/kWh.

Consumers should therefore distinguish between the WESM price adjustment and the final electricity rate on their bill.

The Regional SPC does not guarantee that electricity rates will always go down. WESM prices remain dependent on market and supply conditions, while other portions of the electricity bill are governed by existing contracts and regulatory charges.

For consumers, the practical takeaway is that the price cap served as a buffer against the unusually high WESM prices recorded in August, helping keep the September retail electricity rate lower than it otherwise would have been.

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Tito J (Bacolod Blogger)

Tito J 9Bacolod Blogger) is a visual artist, educator, entrepreneur and management consultant based in Negros, Philippines. He writes about creativity, travel, work culture, entrepreneurship, and everyday observations drawn from years of teaching in graduate and doctoral programs, running an award-winning design gallery, and working closely with organizations and communities. Through his blog, he shares thoughtful reflections on design, productivity, public service, and the human side of work—always grounded in real experience.