Manila: Amid a significant increase in electricity bills this month due to higher generation charges, the Regional Development Council (RDC) has approved a resolution urging that electric cooperatives in Eastern Visayas be allowed to purchase power directly from the Leyte Geothermal Power Plant. Allan Laniba, the RDC's private sector representative for the energy sector, stated that the council approved the resolution as one of the measures to help reduce electricity costs in the region.
According to Philippines News Agency, the resolution seeks to enforce a provision of the country's Natural Resources Law, which mandates that host communities should be the primary beneficiaries of natural resources. "Geothermal energy is within the soil of Eastern Visayas, and we should benefit from this natural resource through more affordable electricity," Laniba said in an interview.
The Unified Leyte Geothermal Power Plant, located along the boundary of Kananga, Leyte, and Ormoc City, is the largest geothermal power plant complex in Asia, with a generating capacity of more than 700 megawatts (MW). Within the complex is the Malitbog Geothermal Power Station, the world's largest geothermal generating facility under a single roof, with a capacity of 232.5 MW.
Although Leyte hosts the geothermal facilities, Energy Development Corp. (EDC), the plant operator, sells most of its electricity through the national grid or under bilateral contracts. Earlier, EDC stated it had not been supplying power to other electric cooperatives in the region because it was unable to participate in the required Competitive Selection Process (CSP).
Currently, only the Leyte II Electric Cooperative (Leyeco II), based in Tacloban City, and Leyte III Electric Cooperative (Leyeco III), based in Tunga, Leyte, maintain Power Supply Agreements with EDC. These agreements stemmed from the power generator's amended offer to all electric cooperatives in the region in 2014.
"We hope this RDC resolution will gain broad public support as we seek to address the rising cost of electricity. The geothermal power plant generates more than 700 MW, while Eastern Visayas requires only about 300 MW. There is still enough capacity to supply other regions," Laniba added.
Electric cooperatives across Eastern Visayas are expected to impose higher electricity generation charges in the July 2026 billing period following a sharp increase in prices at the Wholesale Electricity Spot Market (WESM). Based on preliminary billing statements released by the Independent Electricity Market Operator of the Philippines, which operates the WESM, the combined billings of the region's 11 electric cooperatives reached PHP1.187 billion.
The electric cooperatives said the surge in WESM charges was driven by the temporary shutdown of several power plants, limited power supply in the Visayas grid, and sustained high electricity demand. These factors prompted multiple yellow and red alert declarations, resulting in higher electricity prices in the spot market.
