Residents of Iloilo City will see a drop of P0.8990 per kilowatt hour (kWh) in their electricity bills this May, mainly due to the lower generation and transmission charges and cheaper rate at the spot market.
Roel Castro, president and chief executive officer of Primelectric Holdings Inc. —the parent firm of MORE Electric and Power Corporation (MORE Power), the city’s distribution utility—said the reduction is primarily due to volatile generation charges and their decision to tap into the Wholesale Electricity Spot Market (WESM), where prices were significantly lower this month.
“Generation is really volatile that it changes from month-to-month, in fact, day-to-day. That is the biggest influence when it comes to our power rate,” Castro said.
The new residential rate is now P11.1354 per kWh, down from P12.0344 in the previous billing cycle (April 18 to May 17).
He added they also decided to maximize the spot market due to the lower rate.
MORE Power has sourced 49 percent of its power supply from the Wholesale Electricity Spot Market (WESM) this month.
“Again, it has something to do also with our philosophy as well as our infrastructure in the company. So we’re able to track all of this in a minute. It is up to that level, the sophistication that we are putting when it comes to price setting,” he added.
However, Castro said that while rates are lower this month, there is no guarantee the trend will continue next month.
He assured the public that their systems are equipped to adapt to price shifts.
Meanwhile, residents are advised to brace for the 12-hour power interruption on Sunday due to the continuation of maintenance and upgrading works of the National Grid Corporation of the Philippines (NGCP).Perla Lena/PNA
MORE Power will also have simultaneous line clearing and maintenance to maximize the activity.
Most of the affected are those connected with the Molo substation.PNA
