Iloilo’s MORE Power reduces September rate

By Sheldeen Joy Talavera – September 21, 2023 | 8:45 pm
from Business World

ILOILO CITY power consumers served by MORE Electric and Power Corp. (MORE Power) will face lower electricity charges in September, with the average rate for residential users falling by P0.2701 per kilowatt hour (kWh).

In a statement Thursday, Razon-controlled MORE Power said the reduction is in effect between Sept. 18 and Oct. 14, it said. Rates have been falling from P14.1512 per kWh in January to the current P10.7139.

“The decrease in rates can be attributed to various factors, including a notable drop in the generation cost to P5.9044 per kWh, a decrease of P0.2039 per kWh for this month,” the company said.

“This reduction is a result of lower fuel costs for purchased electricity from power suppliers, with a particular mention of the positive impact of Sem-Calaca Power Corp. Additionally, the three-month average Newcastle index (which helps set reference prices for coal) fell from 160.73 to 142.39,” it added.

MORE Power said that transmission charge of P0.6643 per kWh fell by P0.0438.

The system loss charge continues on its downtrend to P0.4054 per kWh, the company said.

As of September, the 12-month average system loss was 5.81%, down from 5.85% the previous month.

Meanwhile, MORE Power said that the universal charges and the feed-in tariff allowance (FIT-All) rates remain flat, except for the universal charge for missionary electrification.

Last month, the Energy Regulatory Commission suspended FIT-All collection in September “until otherwise lifted” to ease the burden on consumers.

MORE Power said that it has to reimpose a P0.0239 per kWh charge as per 2012 True-up rate following guidance from the Power Sector Assets and Liabilities Management Corp.

“It is also worth noting that VAT (Value Added Tax) and other taxes have decreased in line with the overall reduction in the aforementioned charges, providing further relief to Iloilo City consumers,” it said.