Residents of Iloilo City can now breathe a sigh of relief as they have been enjoying a continuous drop in their electricity bills for the past three months. MORE Electric and Power Corporation (MORE Power), the sole power distributor in the city, has been successful in reducing the total average rate of electricity consumption, providing some much-needed financial relief for its residents.
According to MORE Power, the downward trend started in November 2022 when they reduced the total average rate from P14.84 per kilowatt-hour to P14.68/kWh in December – a reduction of 15 centavos. The trend continued this January, with a reduction of 53 centavos per kWh. This month, MORE Power further reduced the rates by another 50 centavos, bringing the total reduction to P1.20 since December. As of today, the total average rate of residential consumers in Iloilo City is P13.64 per kWh.
The decrease in generation charges is attributed to the lower price of coal in the world market and Wholesale Electricity Spot Market (WESM), which has been declining in the past months. MORE Power’s Vice President for Corporate Planning and Regulatory Niel Parcon said the reduction in fuel prices of coal-fired generation companies was due to the continued decline in the Newcastle index, which determines the price of coal in the world market.
“This also proves what we were saying before – that the price of coal in the world market greatly influences our generation charge and total average rate. If it increases, our rate increases. If it gets lower, our rates will decrease,” Parcon further explained.
The decrease in electricity rates does not yet include MORE Power’s 20-megawatt geothermal power supply contract with the Energy Development Corp, which is much lower than the coal-based supply. If this trend continues, residents of Iloilo City can expect a more stable and affordable supply of electricity in the coming months, which will bring further relief to consumers’ pockets.
The residents of Iloilo City are ecstatic with this recent development, especially those who have been struggling to pay their bills. With the continuous drop in electricity rates, they can now allocate their funds to other necessities. In a time where inflation rates are soaring, this news provides some much-needed financial relief for the people of Iloilo City.