Consumers in Iloilo City will see lower electricity bills this May after MORE Electric and Power Corp. (MORE Power) reduced the power rate to cushion the impact of rising global fuel prices and higher generation costs.
The Razon-led firm said on Monday that residential rates dropped to P11.8710 per kilowatt-hour (kWh) from P12.14 per kWh in April, while commercial rates declined to P11.00 per kWh from P11.27 per kWh.
The lower rates were mainly driven by reduced transmission charges, which fell to P0.26 per kWh compared to the previous month.
System loss charges also declined by P0.027 per kWh as overall system loss improved to 5.20 percent from 5.37 percent.
The rate reduction came despite an increase in generation charges, which rose by P0.05 per kWh due to higher coal prices and increased freight costs for imported fuel. Inflation and foreign exchange movements also pushed generation costs upward.
During the billing period, prices at the Wholesale Electricity Spot Market likewise increased to P4.47 per kWh.
MORE Power said it managed to bring down overall rates by sourcing cheaper electricity through bilateral supply contracts.
“We strive to provide our consumers with the best electricity rates despite the challenges we are currently facing,” MORE Power President and CEO Roel Z. Castro said.
“MORE Power remains steadfast in ensuring the welfare of Ilonggos by delivering quality and affordable electricity to every household and establishment. As the heat index rises this summer, consumers are encouraged to practice mindful electricity use, since greater appliance demand can lead to higher bills,” he added.
To ensure stable electricity prices ahead of June, MORE Power said it is closely monitoring supply conditions following several yellow and red alerts issued across the Visayas region amid high power demand.
