carcarcity
ERC suspends the reserve market behind costly Visayas power
News

ERC suspends the reserve market behind costly Visayas power

The ERC halts the power reserve market that pushed up Visayas costs, the DOE warns of shortages through 2027, and Pagasa sees drought in Cebu by early 2027.

  1. ERC suspends the power reserve market blamed for high Visayas costs
  2. DOE expects Visayas power shortages to last through 2027
  3. Pagasa sees dry conditions in Cebu by December and possible drought by February
  4. Modern jeepney operators in Cebu can claim ₱20,000 a month in aid
Power

ERC suspends the power reserve market blamed for high Visayas costs

The Energy Regulatory Commission has temporarily stopped the reserve market in the wholesale electricity spot market, with the Department of Energy's agreement. It is where the grid operator buys standby power to keep the grid stable. In the Visayas, reserve prices averaged about ₱21 per kWh in 2025, several times the spot price. Until a new set-up is ready, reserves must come from existing contracts at approved rates, or from plants kept on at cost. NGCP has 30 days to assess what reserves are still missing, and six months, with the market operators, to propose a redesigned reserve market.

What it means for Carcar

Reserve costs are passed on to consumers through electricity bills, and the Visayas has carried the heaviest share. Neither the ERC nor the reports say when, or by how much, bills will go down. Most of Carcar is served by CEBECO I, so compare your next few bills rather than expecting an immediate drop.

Sources: BusinessMirror, Insider PH

Power

DOE expects Visayas power shortages to last through 2027

At the Cebu Energy Summit at the Provincial Capitol on 12 October, Energy Secretary Sharon Garin said Visayas supply will likely stay tight through 2027, until new power plants start running from 2028. The DOE is lining up nearly 300 megawatts of power barges and about 250 megawatts of battery storage for the Visayas, with the barges aimed at early 2027. Garin and Governor Pamela Baricuatro signed a new Cebu Energy Alliance of government, business and power companies. Garin said cutting demand by 10 to 20 percent could reduce, or even avoid, yellow and red grid alerts.

What it means for Carcar

Expect more rotating brownouts during grid alerts over the coming months, especially in the dry season when El Niño adds strain. Turning off unused lights, unplugging appliances on standby and setting air conditioners to about 24°C help the whole grid during evening peaks.

Sources: SunStar, BusinessMirror

Weather

Pagasa sees dry conditions in Cebu by December and possible drought by February

Pagasa rates the current El Niño as strong to very strong, likely to peak before the end of 2026 and to last into the first half of 2027. At a media forum on 13 October, Pagasa Visayas chief Al Quiblat said rainfall should stay near normal in October and then fall off, running 21 to 60 percent below normal through March 2027. For Cebu, he said dry conditions could start by the end of December, a dry spell in January, and drought in February and March if the deficit holds. Vice Governor Glenn Soco said the Provincial Board is ready to declare a state of emergency if needed.

What it means for Carcar

DOST 7 says farms on higher ground with little irrigation face the most risk, so farmers in Carcar's upland barangays should plan planting and water storage now. Households can fix leaks, store rainwater while it still falls, and be ready for tighter water supply in early 2027.

Sources: SunStar, Pagasa

Transport

Modern jeepney operators in Cebu can claim ₱20,000 a month in aid

The LTFRB in Central Visayas says operators of modern jeepneys in Cebu can get ₱20,000 in financial aid for three months. Under the national program, it is ₱20,000 per unit per month, for up to three months, for cooperatives and companies that joined the jeepney modernization program and are behind on, or struggling with, their vehicle loans. The money can also cover fuel, maintenance and parts. LTFRB-7 lists a bank certificate, a working unit and a certificate of good standing as requirements, and cites the large loans operators took on and fuel prices pushed up by the Middle East conflict.

What it means for Carcar

This is for operators, not individual drivers or commuters. If you run a modern jeepney through a transport cooperative, ask your cooperative or the LTFRB-7 office in Cebu City about applying. For riders, the aim is to keep modern jeepneys on their routes instead of parked.

Sources: GMA News, The Philippine Star

  • carcar
  • cebu
  • daily-briefing

More news

All news →