ILOILO City – Residential power consumers in this southern city enjoy a P3.5588 per kilowatt-hour (kWh) adjustment – a 36-percent drop in electricity rates this month, MORE Electric and Power Corp. (MORE Power) announced. The P10.0149 per kilowatt-hour (kWh) in June has been slashed to P6.4562.
According to Roel Castro, president of MORE Power, they were able to connect 100 percent to the transmission grid and thus could now choose whichever supplier could give the best rate.
“Unlike in the past when ang aton percentage to choose was only 30 percent. But starting July, we were able to do a 100 percent connection sa grid giving us 100 percent access to the choices available in the market,” Castro said.
The dramatic drop also came following the expiration of MORE Power’s emergency power supply contracts with Panay Energy Development Corp. (PEDC) and Panay Power Corp. (PPC) on May 25, 2021, said Karen Joy Elequin, MORE Power’s Energy Sourcing Manager under the Corporate Planning & Regulatory Affairs Department.
On May 26, MORE Power’s five-megawatt supply contract with the Power Sector Assets and Liabilities Management Corp. (PSALM) took effect. With this, Elequin noted, this month’s energy mix is dominated by PSALM-run Unified Leyte Geothermal Power Plant.
“And by taking advantage of PSALM’s competitive TOU (Time-Of-Use) rates over the extraordinary high prices of the Wholesale Electricity Spot Market (WESM) for this billing month due to outages of several power plants, we were able to sell the surplus energy to the market and that explains the negative share of WESM in our generations,” said Elequin.
A household consuming 300 kWh can now expect to save up to P1,067, Elequin stressed.
Other rate classes (intermediate, commercial power, city streetlights, city and other government offices) can also expect a reduction of P3.3012 per kWh this month.
Elequin also noted that despite the numerous price spikes in the WESM, MORE Power was able to push down the blended generation rate by P2.05 per kWh.
History-wise, MORE Power was able to lower down the electricity rates in this city in the first year of its operation, she said.
In a report provided by MORE Power, Elequin emphasized that compared to other distribution utilities’ rates in others cities and municipalities in the country, MORE Power has the lowest average electricity rates per kWh this month.
Neil Parcon, head of the Corporate Planning & Regulatory Affairs Department, said this power rate reduction is a fulfillment to one of the main promises of MORE Power. They are also hoping that this could last long.
“This reduction of rates will hopefully be continued as long as the supply of PSALM energy is available even after next year,” said Parcon.
He added that this is also in compliance with the requirements of the Electric Power Industry Reform Act (EPIRA) which is to provide electricity in the least cost manner, and of MORE Power’s franchise law (Republic Act 11212).
On the other hand, Castro appealed to residents to refrain from connecting illegally.
“With the very lenient and easy application process natin, there is really no reason for them not to have a legal electric connection,” Castro said.
For those using sub-meters, Castro said they could be charged by resellers up to P15 to P20 per kWh, much higher compared to this month’s P6.4562 adjustment.
“Ang laking savings na mabibigay nito not only for businesses but even for ordinary consumers, and even those who had difficulty applying, because tingin nila kulang ang kanilang pambayad. So now is really the opportunity for you to come forward because the rates are low,” said Castro./PN
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