MORE cites value of advance deals
In anticipation of the increase in demand for the summer, we have secured bilateral contracts of 66 percent. Thus, our exposure to WESM is only 34 percent
Daily TribuneIn anticipation of the increase in demand for the summer, we have secured bilateral contracts of 66 percent. Thus, our exposure to WESM is only 34 percent
All power distribution utilities need to practice securing advanced bilateral contracts with power generators to avoid relying on expensive resources and maintain competitive electricity rates for consumers.
MORE Electric and Power Corp. Vice President for Corporate Energy Sourcing and Regulatory Affairs Niel V. Parcon exemplified on Monday the company’s limited exposure to the Wholesale Electricity Spot Market (WESM), which has helped tempered the price increases.
“In anticipation of the increase in demand for the summer, we have secured bilateral contracts of 66 percent. Thus, our exposure to WESM is only 34 percent,” Parcon said.
19% increase
“Our energy purchases for this billing cycle have increased by 19 percent,” he added, emphasizing the importance of the bilateral agreements with the power generators.
Despite an increase in its electricity rates for May billing, MORE Power continues to offer the lowest electricity rates in Western Visayas.
The effective residential electricity rate for MORE Power reflected on its consumers’ bills from 18 May to 12 June only clocked in at P11.3263 per kilowatt-hour.
According to Iloilo City Mayor Jerry P. Treñas, the lower rates are a significant boost for the city, which could jack up investments and business activities.
”This is also a very welcome development for every Ilonggo household, which will no longer have to worry about high electric bills,” Treñas said.
MORE Power currently maintains a diverse mix of energy sources, the majority of which was still sourced from coal-fired plants but the company has already signified its intention to augment clean energy in the ratio.
