The bilateral contracts entered into by MORE Electric and Power Corp. (MORE Power) with various power providers helped cushion the impact of higher generation costs, resulting in a minimal PHP0.27 per kilowatt hour (kWh) increase for residential consumers this August.
MORE Power spokesperson Angel Tan said that their agreements have a specific provision for flexibility and are not fixed, allowing them to choose the lowest provider when purchasing electricity.
“That is the strategy of MORE Power, that is why we can find ways to bring down the price,” she said, adding that if not for the flexible contract, the increase could have been higher.
The utility provider announced on Monday that the electricity rate for residential customers in August increased to P10.88 per kWh from last month’s P10.61 per kWh. The commercial rate is now P10.19 per kWh from P9.93 per kWh in July.
The upward adjustment is due to higher generation costs driven by rising prices in the Wholesale Electricity Spot Market (WESM), where the effective rates surged to P4.28/kWh from P3.64 per kWh in July. MORE Power sourced 49 percent of its supply for the month from WESM and the rest from bilateral agreements.
In July, the residential rate increased by nine centavos, in contrast to a six-centavo decline in June. While generation charges increased this month, the transmission charges declined due to reduced adjustments from previous bills, slightly offsetting the overall increase.
Meanwhile, Tan said they are looking at increased power consumption leading into the “ber” months and with the opening of classes at the tertiary level. In July, power consumption in Iloilo City peaked at 132.4 megawatts.
“We remind our consumers to be mindful of their energy consumption. No matter how small, their cooperation would have an impact on our power situation,” she added.PNA
