Visayan Electric Company (VECO) has submitted a capital expenditure (CAPEX) program proposal costing Php 4.273 billion to the Energy Regulatory Commission (ERC)/
Manila Standard reported that the majority of the proposed CAPEX would be allocated to network projects, totaling Php 962.443 million, with additional network projects receiving Php 577.277 million and non-network projects at Php 124.523 million.
VECO, a subsidiary of Aboitiz Power Corporation, estimated that if its CAPEX plan pushes through, it will result in an indicative rate increase of approximately Php 0.1661 per kilowatt-hour (kWh) for its customers. The company noted that this rate impact is preliminary and will be finalized during the rate reset process.
Furthermore, the company stated that continuous investment in system and service improvements is essential to fulfill its responsibilities under the Electric Power Industry Reform Act (EPIRA).
Key projects in VECO’s CAPEX plan include the rehabilitation of the Pakna-an substation, which is crucial for maintaining reliable operations. The program also includes installing a new power transformer at the Mambaling Substation to address potential capacity issues.
Other components of the plan involve establishing the Subangdaku Substation, upgrading meters, voltage correction, capacitor bank installations, line rehabilitation, and maintenance work.
Additionally, VECO is aiming to enhance the New Visayan Electric Naga substation and related south sub-transmission projects to boost transformer capacity and improve reliability in the southern part of its service area.
The company is also working to construct a new 69-kilovolt (KV) line (Naga-Sibonga Line Extension) to alleviate capacity deficiencies by connecting existing lines to another substation.
VECO is the power distributor serving Naga, Talisay, Cebu, Mandaue, and several municipalities in the Cebu province.
