Iloilo City residents face P1.02/kWh increase in May electricity bills

ILOILO. Residents in Iloilo City face a P1.02 per kWh increase in electricity bills for May 18, 2024, to June 12, 2024, resulting in an effective residential rate of P11.3263/kWh.
ILOILO. Residents in Iloilo City face a P1.02 per kWh increase in electricity bills for May 18, 2024, to June 12, 2024, resulting in an effective residential rate of P11.3263/kWh. (More Power)

RESIDENT of Iloilo City served by More Power can expect a P1.02 per kilowatt-hour (kWh) increase in their electricity bills for May 2024. 

This brings the effective residential rate to P11.3263/kWh, reflected on bills from May 18 to June 12, 2024.

The rise in electricity costs is primarily driven by the increase in the average nodal prices of the Wholesale Electricity Spot Market (WESM), which jumped from P8.67/kWh to P11.85/kWh. An increase of P0.9392/kWh in generation.

The increase in WESM prices coincides with the recent "red" and "yellow" alerts declared by the National Grid Corporation of the Philippines (NGCP) in Luzon and Visayas, highlighting the current thin supply situation in the power grid.

The rise in generation charges also led to higher taxes. An increase of P0.1192/kWh in generation rates.

The system loss rate increased significantly due to a P0.449/kWh increase in generation rate, despite a reduction in the 12-month average system loss.

This increase offsets the slight decrease in the transmission charge cost. 

The Distribution, System, and Metering (DSM) charges, which are the only part of the electricity bill that directly benefits More Power, have not been adjusted.

The transmission charge was reduced (P0.0822/kWh), but the cost was spread over higher energy consumption.

The residential rates in Iloilo City increased not because of More Power charges (distribution, supply, and metering), which remain steady, but because of generation (P0.9392/kWh), taxes (P0.1192/kWh), and system losses (P0.0449/kWh).

In total, the electricity bills have increased by a total of P1.02 per kWh.

The increase in generation charge resulted in higher taxes and system loss rates, but the 12-month average system loss slightly decreased from 5.50 percent to 5.44 percent.

Residential 2024 rates:

January - P10.3280/kWh

February - P9.9652/kWh

March - P10.0316/kWh

April - P10.3062/kWh

May - P11.3263/kWh

Consumers are encouraged to practice energy conservation measures to manage their electricity consumption and potentially minimize the impact of the rate hike on their monthly bills. (Leo Solinap/SunStar Philippines)

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