Visayan Electric Company
A major private electricity distribution utility serving Metro Cebu in the Philippines.
Last updated August 24, 2026
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Overview
Visayan Electric Company, commonly known as Visayan Electric and formerly as VECO, is a privately held electricity distribution utility in the Philippines. Its franchise covers a substantial portion of Metro Cebu, including Cebu City, Mandaue, Talisay and Naga, together with the municipalities of Liloan, Consolacion, Minglanilla and San Fernando. The service territory covers approximately 672 square kilometers and serves an estimated population of about 1.73 million. The company traces its origins to 1905, when a group of Cebu businessmen established an electricity enterprise with an 800-kilowatt generating facility near the Cebu pier. During its early decades, Visayan Electric moved from a small local generation operation toward a broader distribution network. Control passed in 1918 to Viuda é hijos de Francisco Escaño, Inc., under whose direction the company expanded generating capacity and modernized its equipment. Gas engines replaced the original steam engine, and additional diesel-generating equipment was installed as electricity demand increased. A major turning point came in the late 1920s and early 1930s, when the company pursued legislative authority to extend its operations beyond Cebu City. The resulting franchise allowed Visayan Electric to operate in several municipalities north and south of the city. This expansion established the geographic foundation of the utility’s modern service area and supported the installation of larger generating equipment. By 1938, the company reported approximately 10,000 customers and operated subsidiary plants in Bogo, Dumaguete and Dipolog, although its present franchise is concentrated in Metro Cebu. The Second World War severely disrupted the business. Generation facilities were bombed during the conflict to prevent Japanese forces from controlling the electricity network. Visayan Electric resumed service in December 1945 after the war, beginning the long process of rebuilding its generation and distribution infrastructure. The company’s franchise has been extended through Philippine legislation. Act No. 3499 provided the original long-term authorization to install, operate and maintain electric light, heat and power systems in the covered Cebu municipalities. Republic Act No. 6454 extended the franchise in 1972, and Republic Act No. 9339 provided a further 25-year extension in 2005. The current service territory consists of four cities and four municipalities in Metro Cebu. Visayan Electric’s role is primarily distribution rather than retail energy branding in the consumer-goods sense. It operates and maintains substations, feeders, lines, meters, customer-service facilities and related grid assets, while managing the delivery of electricity purchased or sourced through the Philippine electricity market and other supply arrangements. Its operational systems include supervisory control and data acquisition technology for remote monitoring and control, as well as geographic information systems for mapping and managing network facilities. The company has also developed customer-facing infrastructure. In 2005 it opened a full-service center at SM City Cebu with a contact center using voice-over-IP technology integrated with a customer relationship management system. A smaller service center in Talisay City followed in 2007 to support customers in the southern part of the franchise area. Visayan Electric is associated with Aboitiz Power Corporation and Vivant Corporation, which own and manage the utility through their interests in the company. Aboitiz Power is publicly listed on the Philippine Stock Exchange, but Visayan Electric itself is privately held. Its core positioning is that of a regional electricity-distribution specialist supporting households, businesses, institutions and industrial users across one of the Philippines’ most economically important urban areas.
History
Visayan Electric Company began operations in Cebu in 1905, founded by local businessmen led by M. Levering, A. Bryan, R. Landon and Arlington Pond. Its initial plant had an 800-kilowatt generating capacity and was located near the Cebu pier. The enterprise was established during the early development of commercial electricity in the Philippines, when local utilities commonly combined generation, distribution and customer-service functions. In 1918, Viuda é hijos de Francisco Escaño, Inc. acquired control of the company. Under the Escaño family, the utility invested in larger and more flexible generating equipment. In 1919, two 250-horsepower gas engines were acquired to replace the original 300-horsepower steam engine. Rising electricity use soon exceeded the capacity of the new equipment. A 500-horsepower Swedish Polar Atlas diesel engine was added in 1925, followed by another diesel engine rated at 550 horsepower in 1929. These additions reflected both growing demand and the expanding accessibility of electricity in Cebu. The company’s geographic ambitions also expanded. In 1929, Gabriel A. Daza, then supervising engineer and assistant general manager, pursued legislative approval for a wider operating franchise. The authorization granted in the early 1930s allowed Visayan Electric to serve communities north and south of Cebu City, including Mandaue, Consolacion, Liloan, Talisay, Minglanilla, Naga, San Fernando and Danao. The expansion required additional generation capacity, including a 1,500-horsepower Sulzer-Unternehmungen AG Winterthur internal-combustion engine. In 1933, the utility generated more than 3.8 million kilowatt-hours. By 1938, Visayan Electric had around 10,000 customers and operated subsidiary plants in Bogo in Cebu, Dumaguete in Negros Oriental and Dipolog in Zamboanga. The company’s prewar development was interrupted by the Second World War. Generation units were bombed by United States Armed Forces in the Far East forces to deny the occupying Japanese forces control of the electricity system. The destruction halted normal operations, but the company resumed supplying power in December 1945 after the war ended. The legal basis for the company’s franchise was Act No. 3499, approved by the Philippine Legislature in 1928. The act authorized the installation, operation and maintenance of electric light, heat and power systems in Cebu and surrounding municipalities. Republic Act No. 6454 extended the franchise for an additional 25 years beginning in 1972. A further 25-year extension was enacted through Republic Act No. 9339 in 2005. The modern franchise area covers Cebu City, Mandaue, Talisay and Naga, plus Liloan, Consolacion, Minglanilla and San Fernando. Over time, Visayan Electric shifted from a primarily generation-based local utility into a modern distribution company connected to the broader Philippine power system. Its infrastructure-management capabilities include SCADA for remote monitoring and control of distribution assets and GIS for recording, mapping and managing network facilities. The utility has also invested in customer-service channels. A full-service center and contact center opened at SM City Cebu in 2005, followed by a smaller Talisay City facility in 2007. The company is now associated with Aboitiz Power Corporation and Vivant Corporation. Aboitiz Power is a publicly listed Philippine power company, while Visayan Electric remains privately held. The utility’s current business is centered on distributing electricity to the dense and economically active Metro Cebu area, maintaining a large network of substations, feeders, lines and meters, processing connections and billing, and responding to reliability and service needs across its franchise territory.
- 2007
Talisay service center opens
[1]A smaller customer-service facility opened in Talisay City to support customers in the southern part of the franchise area.
- 2005
Franchise renewed and Cebu service center opened
[1]Republic Act No. 9339 provided a further 25-year franchise extension. The company also opened a full-service center and contact center at SM City Cebu.
- 1972
Franchise extended under Republic Act No. 6454
[1]Republic Act No. 6454 extended the company’s legislative franchise for another 25 years.
- 1945
Postwar service resumes
[1]After wartime destruction of its generating units, the company returned to business and resumed power delivery in December.
- 1938
Customer base reaches approximately 10,000
[1]Visayan Electric reported roughly 10,000 customers and operated subsidiary plants in Bogo, Dumaguete and Dipolog.
- 1931
Franchise expansion beyond Cebu City
[1]The company received authority to extend operations north and south of Cebu City, establishing the basis for its wider regional network.
- 1928
Original legislative franchise approved
[1]Act No. 3499 authorized the company to install, operate and maintain electric light, heat and power systems in Cebu and surrounding municipalities.
- 1925
Additional diesel capacity installed
[1]A 500-horsepower Polar Atlas diesel engine was added as electricity demand outgrew the company’s earlier gas-engine capacity.
- 1918
Escaño interests acquire control
[1]Viuda é hijos de Francisco Escaño, Inc. took control and began expanding the company’s generating capacity and distribution network.
- 1905
Company founded in Cebu
[1]A group of Cebu businessmen established Visayan Electric Company and began with an 800-kilowatt generating facility near the Cebu pier.
Products and positioning
A regional electricity-distribution utility focused on reliable power delivery, network modernization and customer service in Metro Cebu.
Utility service · 1905
Electricity distribution
The company’s primary offering is the distribution of electricity to residential, commercial, institutional and industrial customers across its Metro Cebu franchise. This includes operation and maintenance of substations, distribution lines, feeders, transformers, meters and related grid equipment. Visayan Electric functions as a distribution utility rather than a consumer-facing electricity-generation brand.
Customer service
New electrical connections
Visayan Electric provides processes and support for connecting new customers to its distribution network. Connection services typically involve customer applications, technical assessment, metering and energization within the requirements of the company’s franchise and Philippine electricity regulations.
Utility administration
Metering and billing services
The utility manages electricity metering, consumption recording, billing and account-related assistance for customers in its service territory. These functions support the commercial relationship between the distribution company and the households, businesses and institutions connected to its network.
Grid technology
Grid monitoring and control
The company uses supervisory control and data acquisition technology to monitor and control parts of its electricity-distribution assets remotely. It also uses geographic information systems to map and manage facilities, helping the utility maintain records of network equipment and support operational planning.
Brand decisions
2007
Added southern-area customer-service facilityStrategyBackground
Customers in the southern portion of the franchise area required a more accessible local service channel.
Action taken
The company opened a smaller full-service center in Talisay City.
Aftermath
The facility extended in-person customer support closer to communities south of Cebu City.
2005
Expanded customer-service infrastructureStrategyBackground
As the Metro Cebu customer base and service territory developed, the utility expanded its customer-facing operations beyond conventional local offices.
Action taken
Visayan Electric opened a full-service center at SM City Cebu with a contact center using voice-over-IP technology integrated with a customer relationship management system.
Aftermath
The initiative created a larger centralized channel for customer assistance and account support.
Recent events
Visayan Electric rolls out MobileAP beta[3]
Reported:
Visayan Electric rolled out the beta version of its MobileAP app, which lets customers view their electricity bills and access other listed account information.
Sources3 sources
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