MORE Electric and Power Corporation (More Power) has announced a reduction in its electricity rate for May, lowering residential charges by P0.27 per kilowatt-hour (kWh) to provide much-needed relief to consumers in Iloilo City. This rate cut comes despite the ongoing challenges posed by rising global fuel prices linked to the crisis in the Middle East.
Rate Details for May
Roel Castro, president and chief executive officer of More Power, emphasized the company's commitment to affordable electricity while maintaining reliable service. The residential electricity rate for May decreased to P11.8710 per kWh from P12.14 per kWh in April. Commercial rates also saw a decline, dropping to P11.00 per kWh from P11.27 per kWh in the previous month.
According to Castro, “We strive to provide our consumers with the best electricity rates despite the challenges we are currently facing. 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.”
Factors Behind the Rate Reduction
The lower rates were primarily driven by reduced transmission charges, which fell to P0.26 per kWh compared with the previous month. Additionally, the system loss charge decreased by P0.027 per kWh following adjustments in transmission costs. More Power reported that overall system loss improved from 5.37 percent to 5.20 percent.
However, generation charges increased by P0.05 per kWh due to higher coal prices and rising freight costs for imported fuel. Inflation and foreign exchange fluctuations also contributed to the increase in generation costs. Prices in the Wholesale Electricity Spot Market rose to P4.47 per kWh, adding pressure to overall power supply costs.
Despite these increases, More Power was able to reduce final electricity rates for consumers by securing lower-cost power through bilateral supply contracts. The company said the rate reduction offers relief to households and businesses facing increasing prices of basic commodities and services.
Commitment to Stable Service
More Power added that it continues to monitor electricity supply and pricing conditions ahead of June, following several yellow and red alerts issued by the National Grid Corporation of the Philippines. These alerts indicate possible supply shortages due to rising demand. The company reaffirmed its commitment to providing stable, reliable, and affordable electricity service to Ilonggo consumers.
