MORE Power cuts May electricity rate

MORE Electric and Power Corp. lowered its electricity rates in May, offering relief to Ilonggo consumers despite upward pressure on global commodity prices linked to the continuing crisis in the Middle East.

The residential rate for May fell to PHP 11.8710 per kilowatt-hour from PHP 12.14 per kWh in April.

The commercial rate also declined to PHP 11.00 per kWh from PHP 11.27 per kWh last month.

MORE Power said the reduction was driven mainly by a lower transmission charge, which dropped by PHP 0.26 per kWh from the previous month.

The system loss charge was also reduced by PHP 0.027 per kWh, reflecting the transmission adjustment.

The company said overall system loss improved to 5.20% from 5.37%.

The lower retail rates came despite an increase in generation costs.

MORE Power said the generation charge rose by PHP 0.05 per kWh because of higher coal prices and increased freight costs tied to imports.

The company also cited inflation, as measured by the consumer price index, and foreign exchange fluctuations as factors that pushed generation costs higher.

Prices at the Wholesale Electricity Spot Market likewise climbed to PHP 4.47 per kWh.

Despite the higher generation charge, MORE Power said it managed to reduce final consumer rates by sourcing cheaper electricity through bilateral contracts.

“We strive to provide our consumers with the best electricity rates despite the challenges we are currently facing,” said Roel Z. Castro, president and CEO of MORE Power. “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,” Mr. Castro added.

The rate cut comes as households and businesses continue to face higher costs of basic goods and services.

MORE Power said the adjustment reflects its continuing efforts to reduce the financial burden on families and establishments in Iloilo City.

The company also said it is monitoring electricity price and supply conditions ahead of June.

The monitoring follows several yellow and red alerts issued by the National Grid Corp. of the Philippines, which indicate possible supply tightness when available power capacity is low relative to demand.

MORE Power reaffirmed its commitment to maintaining reliable service and affordable electricity for Ilonggos.