CAGAYAN DE ORO CITY — The Cagayan Electric Power and Light Company (CEPALCO) has warned consumers of a potential increase in electricity rates as global oil prices surge due to ongoing tensions in the Middle East.
In an interview with Bombo Radyo, Marilyn Chavez, Assistant General Manager of CEPALCO, explained that rising fuel costs directly affect the generation charge the portion of the bill covering electricity purchased by distribution utilities from power generators.
Since some suppliers rely on fuel for their operations, higher fuel prices could drive up generation costs, which may eventually be passed on to consumers.
Chavez assured the public that CEPALCO will notify customers of any rate adjustments should price changes occur.
