Primelectric Holdings, Inc.’s utilities rolled out lower electricity rates in the Visayas this month after tapping into cheaper supply agreements and market-based procurement strategies to lower consumer bills.
The Razon-controlled company said Wednesday its distribution utilities in Iloilo, Negros, and Bohol all posted lower residential rates during the month, which it claimed were the lowest in their respective areas in the region.
Negros Power said the lower rate was largely due to “efficient procurement” of electricity from generation companies and to its active participation in the Wholesale Electricity Spot Market, where electricity is traded in real time.
Primelectric President and Chief Executive Officer Roel Z. Castro said the rate cuts were expected to help consumers cope with rising living costs.
“While global energy markets remain unpredictable, our priority has always been to deliver stable and more affordable electricity to the communities we serve,” he said. “These rate reductions reflect our efforts to cushion households from volatility in fuel and commodity markets.”
Based on the data provided by Primelectric, Bohol Light Company Inc. recorded the biggest reduction, cutting residential rates by P2.0068 per kilowatt-hour (/kWh) to P10.5081/kWh. Commercial rates also declined to P9.9291/kWh.
The utility said the lower rates were driven by reduced generation and transmission charges, lower line rental costs and the suspension of the Green Energy Auction allowance charge for the May and June as directed by the Energy Regulatory Commission.
In Iloilo, MORE Electric and Power Corp. lowered residential rates to P11.8710/kWh from P12.14/kWh in April.
MORE Power said the reduction came from a P0.26/kWh decline in transmission charges and lower system loss charges.
The utility also used cheaper bilateral supply contracts to offset a P0.05/kWh increase in generation charges caused by higher coal prices, import freight costs, inflation, and foreign exchange fluctuations.
Meanwhile, Negros Electric and Power Corp. posted a residential rate of P11.38/kWh in May, down P0.8655/kWh from P12.2463/kWh in April.
