MORE Electric and Power Corporation (More Power) reduced its electricity rate for May by P0.27 per kilowatt-hour (kWh), bringing relief to consumers despite rising global fuel prices linked to the ongoing crisis in the Middle East.
Roel Castro, president and chief executive officer of More Power, said the company continues to prioritize affordable electricity rates while maintaining reliable service for consumers in Iloilo City.
“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,” Castro said.
The residential electricity rate for May dropped to P11.8710 per kWh from P12.14 per kWh in April. Commercial rates also declined to P11.00 per kWh from P11.27 per kWh last month.
More Power said the lower rates were mainly driven by reduced transmission charges, which declined to P0.26 per kWh compared with the previous month. The system loss charge also decreased by P0.027 per kWh following adjustments in transmission costs.
The company reported that overall system loss improved from 5.37 percent to 5.20 percent.
However, More Power noted that generation charges increased by P0.05 per kWh due to higher coal prices and rising freight costs for imported fuel. Inflation and foreign exchange fluctuations also contributed to the increase in generation costs.
Prices in the Wholesale Electricity Spot Market also rose to P4.47 per kWh, adding pressure to overall power supply costs.
Despite the increase in generation charges, More Power said it was able to reduce the final electricity rates for consumers by securing lower-cost power through bilateral supply contracts.
The company said the rate reduction offers relief to households and businesses facing increasing prices of basic commodities and services.
More Power added that it continues to monitor electricity supply and pricing conditions ahead of June following several yellow and red alerts issued by the National Grid Corporation of the Philippines, indicating possible supply shortages due to rising demand.
The company reaffirmed its commitment to providing stable, reliable, and affordable electricity service to Ilonggo consumers. (Leo Solinap)