BY MYRNA M. VELASCO – Jul 19, 2023 02:24 PM
from Manila Bulletin
Consumers in Iloilo City have been experiencing relief in their pockets as electricity rates billed by their distribution utility MORE Electric and Power Corporation have been on a downtrend in the past seven months.
MORE Power President and CEO Roel Z. Castro said in a statement that “electricity rates in Iloilo City have decreased for the seventh consecutive month,” stressing that “this achievement is a testament to the dedication and patience of our energy sourcing team, as they continuously source for cost-efficient power generation supply, the entry of renewable energy, and favorable market conditions.”
MORE Power noted that there was P0.2410 per kilowatt hour (kWh) rate cut in its July billing cycle, resulting in overall tariff at P11.4173 per kWh from the previous month’s P11.6583 per kWh.
The company specified “residents can expect the reduced rates to reflect in their bills from July 18, 2023, to August 14, 2023.”
“The decreasing electricity rates can be attributed to a combination of factors,” the company said, adding that the inclusion of renewable energy in its supply portfolio further propped the cost decline on its pass-on generation charge.
The generation charge, as a line item in the electric bills, accounts for the bulk of the costs being reflected in the bills of all ratepayers – and the supply portfolio of a DU manifests its strategy on procurement of capacity as anchored on a “least cost” basis.
MORE Power narrated that since March this year, “the introduction of renewable energy sources has played a leading role in driving down costs.”
It also emphasized that “the decreasing prices of coal in the global market and a dip in electricity prices in the Wholesale Electricity Spot Market (WESM) have further fueled the downward trend.”
Bringing down electricity rates for consumers had been one of the major campaign promises of the current administration, but many power utilities still struggle on achieving that goal. It is for that reason then that the government has been scrutinizing many of the supply deals that DUs have been entering into with the power producers.
In the case of MORE Power, it indicated that while it logged series of reduction in its tariffs in recent months, it is still advancing cautionary advice to its customers to be very prudent on their electricity usage – not only because of surging fuel prices in the world market, but due to the tight supply conditions repeatedly restraining Luzon and Visayas grids.
“The prices of coal and electricity in the global market remain unpredictable, making it crucial for consumers to utilize electricity responsibly and efficiently,” the Iloilo power utility stated.
It similarly reminded its qualified customers “to apply for the lifeline rate discount. This initiative aims to extend a helping hand to electricity consumers, particularly those living below the poverty line.”
