MORE Power lowers Iloilo City electricity rate for 3 straight months
Low Electricity Rates will be reflected in the meters of Iloilo City power end-users starting May
Iloilo City consumers have been enjoying lower electricity bills for three months in a row as MORE Power reduced the total average rate since November 2022.
According to the distribution utility, the rate was reduced by 15 centavos in December, followed by a reduction of 53 centavos in January and another 50 centavos this February.
In total, the reduction amounts to 1 peso and 20 centavos since December.
As of today, the total average rate for residential consumers in Iloilo City is P13.64 per kWh.
The decrease in generation charges is due to the declining prices of coal in the global market and Wholesale Electricity Spot Market (WESM), which have been declining for the past three months and are expected to continue.
The reduction in fuel prices for coal-fired generation companies is due to the continued decline in the Newcastle index, which determines the price of coal in the world market.
According to Niel Parcon, the Vice President for Corporate Planning and Regulatory at MORE Power, the price of coal in the world market greatly influences their generation charge and total average rate.
“If coal price increases, their generation charge to us also increases, but if it gets lower, their rates will also decrease”, Parcon emphasized.
The decreasing electricity rates bring relief to consumers’ pockets, and if this trend continues, Iloilo City consumers can expect a more stable and affordable supply of electricity in the coming months.
It’s worth noting that the decrease in electricity rates doesn’t include MORE Power’s 20 MegaWatt geothermal power supply contract with Energy Development Corp, which is much lower than the coal-based supply.