TRUE to its promise of providing Ilonggo consumers with the best possible electricity rates despite challenges brought about by volatile global geopolitical conditions, Iloilo City’s sole power distribution utility is offering much-needed relief through lower electricity rates this May.
At a time when the prices of almost everything — from gasoline and diesel to LPG — continue to rise, MORE Electric and Power Corp. (MORE Power) has done the opposite by reducing electricity rates. This move helps offset the upward pressure caused by increasing global commodity prices linked to the continuing instability in the Middle East.
The company, which currently serves Iloilo City and is poised to become the sole power distributor in Iloilo Province, reduced its residential electricity rate to P11.8710 per kilowatt-hour (kWh), down from P12.14 in April. Commercial rates likewise dropped to P11 per kWh from P11.27 the previous month.
The reduction was made possible by a P0.26 per kWh decrease in transmission charges and a slight drop in system loss charges, resulting in an improved system loss rate of 5.20 percent from 5.37 percent.
According to MORE Power, it utilized cheaper bilateral contracts to lower consumers’ electricity bills, thereby offsetting a P0.05 per kWh increase in generation charges caused by higher coal prices, rising import freight costs, inflation, and foreign exchange fluctuations.
On the other hand, prices in the Wholesale Electricity Spot Market (WESM) also increased to P4.47 per kWh.
As MORE Power president and chief executive officer Roel Castro explained:
“We strive to provide our consumers with the best electricity rates despite the challenges we are currently facing. 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.”
The reduction in electricity rates comes at an opportune time, especially as Ilonggo families prepare for the opening of classes in June.
The rate cut provides a welcome and much-appreciated respite as residents continue to contend with rising prices of basic goods and services. MORE Power said the move reflects its continuing efforts to ease the financial burden on households and businesses in Iloilo City.
Take note that Ilonggo consumers will feel the benefit of this reduced rate in their June billing cycle.
Moving on, MORE Power continues to closely monitor price and supply conditions heading into June, particularly after the National Grid Corporation of the Philippines (NGCP) issued several Yellow and Red Alerts — signals of potential power supply shortages relative to demand.
Speaking of NGCP alerts, a Yellow Alert means that power reserves in the electrical grid have become thin. While available supply remains sufficient to meet current demand, the operating margin has fallen below the required safety level.
A Red Alert, meanwhile, is declared when both available power supply and operating reserves are insufficient to meet consumer demand.
This represents the most critical grid condition and often results in rotating brownouts or manual load dropping to prevent a total system collapse.
During a Red Alert, the NGCP works closely with distribution utilities and the Department of Energy (DOE) to implement emergency measures, including activating reserve power plants and enforcing scheduled power interruptions when necessary.
It appears inevitable that the seemingly endless spell of extreme heat, coupled with the delayed arrival of significant rainfall, will continue to drive electricity demand higher and trigger repeated NGCP alerts in the Visayas grid, particularly during afternoon and evening peak hours.
This situation has prompted power distributors across Western Visayas to intensify their calls for consumers to conserve electricity and avoid excessive usage, which could further strain the region’s already stressed power supply.
For its part, MORE Power has stepped up its information campaign to help households cope with increased electricity consumption during the summer months. The company continues to encourage consumers to monitor their power usage and adopt energy-saving habits.
With this much-needed relief in electricity costs, one can only hope that beginning this June — and in the months ahead — MORE Power will continue to uphold its commitment to providing reliable service and affordable electricity to Ilonggos.
Indeed, well played./PN
