Transmission costs drive MORE Power rate hike

By Francis Allan L. Angelo

MORE Power has announced a PHP 0.27 per kilowatt-hour increase in electricity rates for June 2026, driven primarily by higher transmission costs.

Raphael Dorilag, Manager of the Energy Sourcing Department of MORE Power, made the disclosure in the May 2026 Power Rate Advisory episode of “More Power at Your Service.”

“In this month, you will be able to experience the increase in our electricity rates of about PHP 0.27. The increase in our charges is due to the transmission and system loss charge. Our transmission charge increased — it increased by PHP 0.26. The transmission cost is based on the demand of the electricity. So we have the same demand, the same transmission cost. But our kilowatt-hour consumption increased, so the transmission charge increased,” Dorilag said.

He noted that MORE Power reduced its actual system loss from 5.37% to 5.20%, which partially eased pressure on the system loss charge.

“So MORE Power, due to our efforts, has reduced the actual system loss. Based on the decrease in system loss, the system loss charge has also decreased. So if our distribution system becomes more efficient, the improvement in our system loss results in a decrease in the cost for our consumers,” Dorilag said.

The average residential rate for May 2026 stands at PHP 11.87 per kWh, while the commercial rate is PHP 11.09 per kWh.

“In our average residential rate, we have a charge of around PHP 11.87 per kWh. In our commercial rate, we have a charge of PHP 11.09 per kWh. Both sectors have experienced a change of about PHP 0.27. So both commercial and residential consumers are affected by this charge,” Dorilag said.

MORE Power stressed that its published rates are all-inclusive of taxes, with no additional computations required of consumers.

“All taxes are already included as a matter of transparency. We include all taxes upfront so that consumers know the total cost. We include everything all-in,” Dorilag said.

He added that dividing an actual bill amount by the kilowatt-hour consumption should yield a figure consistent with the published rate, with minor variations only due to decimal rounding.

Separate from the rate adjustment, MORE Power also implemented Manual Load Dropping (MLD) in recent weeks following red and yellow alert statuses issued by the National Grid Corporation of the Philippines (NGCP).

Dorilag explained the distinction between the two alert levels.

“Our system operator, the NGCP, issues alert statuses — either red alert or yellow alert. A red alert is issued when the available supply is not enough and the regulating reserve is lower than the demand. The indicator in grid operation is the system frequency — if the frequency drops, it means the demand is higher than supply. So when that happens, NGCP directs distribution utilities and co-ops to reduce or shed load. For example, the NGCP may tell you to shed 6 megawatts, so you rotate load-dropping among your areas,” he said.

The red alert was triggered by a combination of unplanned generator outages in the Visayas.

“The red alert was issued when the supply became severely insufficient compared to demand. There was a lack of supply in our grid — from the generators themselves. There are generators on outage. For example, TVI based in Cebu — they had two plants on unplanned outage, around 169 megawatts. And then there was also the outage of PEDC-3, with a capacity of 150 megawatts. Together with all those factors, the supply in Visayas was already lacking,” Dorilag said.

The crisis was compounded when the tripping of key NGCP transmission lines in Luzon cut off emergency supply to the Visayas.

“Normally, the supply deficiency in Visayas could be supplemented from Luzon through the submarine cable interconnection. But on Wednesday, there was a tripping of the NGCP transmission lines — the Ilihan-Dasmariñas and Ilihan-Tayabas lines — which are major transmission lines located in Batangas. So when those tripped, many plants were knocked off the grid, and Luzon also had a red alert at that time,” Dorilag said.

Dorilag warned that failure to shed load during a red alert could result in total grid collapse, noting that a similar event occurred in 2024.

Despite the supply constraints, Dorilag confirmed that MORE Power’s own distribution infrastructure retains sufficient capacity.

“The capacity of our substations is around 250-plus megawatts. Our highest demand this summer was 155 megawatts — our record as of yesterday. So there is still room to accommodate more demand, if there is supply. The problem is that there is no sufficient supply coming in from the generators and the transmission lines,” he said.

The alert statuses also triggered severe spikes in the Wholesale Electricity Spot Market (WESM).

“So actually, it is a spike — probably 5 times normal, or even more. It can go up to 8 times the normal price. But it only happens for a few intervals, not the entire day. The normal WESM price is around PHP 5 to PHP 6 per kWh. During red alert and yellow alert, it maxes out. The nomination limit is PHP 32 per kWh, but including reserve co-optimization, the interval price can reach PHP 60 per kWh for a few intervals,” Dorilag said.

He said that when averaged, the WESM price during the alert period reached around PHP 7 per kWh, while the generation charge during the red alert peaked at over PHP 30 per kWh.

Looking ahead, Dorilag warned that generation costs are expected to remain elevated through the coming months.

“Sad to say, we are expecting the generation charge to remain elevated. Based on the trend, prices have been high. Although our supply period is not yet over, hopefully the situation will recover. But on the general trend, the generation cost is high for this season,” he said.

Dorilag called on the national government to accelerate the construction of new power plants and ensure proper maintenance of existing ones.

“The government needs to push for additional power plants to be built. And our existing power plants must be properly maintained and operated at full capacity. There are many plants that have not been well-maintained. We need to build more capacity in the country,” he said.

He expressed hope that the return of outaged plants to the grid, combined with easing demand as the rainy season approaches, would improve the supply situation.

MORE Power said it is actively working to limit the financial impact on its consumers in Iloilo.

“On our end at MORE Power, we are maximizing bilateral contracts so that the generation cost will be lower and more stable for our customers. We will do our best to minimize the impact for our consumers — not just for today, but for the security of the entire Iloilo community, Iloilo City, and Iloilo Province,” Dorilag said.

MORE Power urged consumers to conserve electricity in light of tight supply conditions and continued pressure on generation costs.