Power rates rise PHP 1.31 per kWh in Iloilo City

Residential and commercial electricity consumers will see a PHP 1.31 per kilowatt-hour (kWh) increase in power rates this month compared with the previous month’s PHP 11.35 per kWh, driven mainly by higher prices in the Wholesale Electricity Spot Market (WESM).

The surge was attributed to rising electricity prices in the WESM, where distribution utilities, including MORE Power, source part of their power supply. The increase means that the rate hike is not exclusive to MORE Power, as other distribution utilities buying from the same market are similarly affected.

As of this billing period, the residential electricity rate stands at PHP 12.66 per kWh, while the commercial rate is at PHP 11.79 per kWh, both inclusive of value-added tax and other charges.

Power sector officials cited tight electricity supply as the main factor behind the WESM price increase, caused by a combination of scheduled and unplanned outages in several power plants supplying electricity to the market.

This supply constraint mirrors basic market dynamics, where limited availability of a product results in higher prices, ultimately affecting buyers and end consumers.

Data showed that the WESM electricity price rose by PHP 1.5270 per kWh, increasing from PHP 4.9290 per kWh to PHP 6.4560 per kWh.

Several power plant outages contributed to the supply shortfall, including KSPC Unit 1 with a capacity of 103 megawatts (MW) under planned outage from Nov. 15 to Dec. 12, and KSPC Unit 2, also 103 MW, which underwent an unplanned outage from Dec. 5 to Dec. 11.

PCPC Unit 1, with a capacity of 135 MW, was also placed under planned outage from Oct. 13 to Dec. 14, while multiple Mindanao power plants experienced both planned and unplanned outages with total unavailable capacity ranging from 670 MW to 932.9 MW.

The Visayas grid was placed under Yellow Alert on Dec. 11, indicating tight power reserves, while the Unified Leyte Geothermal Plant continues to undergo an ongoing outage.

Despite the spike in electricity prices, no increase was implemented in the distribution charge component of the power rate for the current month.

Officials clarified that the rate hike was not linked to higher electricity consumption in the previous billing period, noting that power usage in November and December remained nearly unchanged. Weather conditions were also cited as a contributing factor.

Transmission charges likewise increased by PHP 0.13, rising to PHP 1.92 per kWh from last month’s PHP 1.791 per kWh.

“MORE is proactively securing additional power supply to mitigate exposure to electricity market volatility and ensure stable and reliable service for our customers,” said Engineer Raphael Dorilag, Energy Sourcing Manager.

Dorilag added that the company is purchasing additional power supply from multiple lower-cost providers to better balance overall pricing and reduce the burden on consumers.

He also assured customers that MORE Power remains committed to prioritizing consumer welfare by sourcing the most affordable electricity available in the market to help stabilize future rates.