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ILOILO CITY—This city’s lone electricity distributor on Wednesday announced yet another reduction in its electricity rates—a trend that started in January.
According to More Electric and Power Corp. (More Power), power rates in the city had been cut by nearly P1 following the inclusion of geothermal sources in the power mix and a decline in spot electricity rates which reflect the current market cost.
“This is the sixth straight month that More Power is reducing its rates,” it said in a statement.
Some residents in Iloilo City, however, said the drop in power rates was too small to notice.
Residential rate from May to June decreased by almost P1 or from P13.2511 per kilowatt-hour (kWh) to P12.2990 per kWh.
More Power said the reduction in power rates was made possible by a decrease in generation costs when geothermal sources were included in the energy mix by the Energy Development Corp., the largest producer of geothermal energy in the Philippines.
Wholesale spot market
More Power said the entry of renewable energy into the supply mix had paved the way for value added tax on the generation charge to drop to P0.1613 per kWh.
Rates in the Wholesale Electricity Spot Market were also reduced from P0.9057 per kWh last year to P0.7226 per kWh.
The decrease in transmission charge led to a decline in system loss charge from 7 percent to 6.49 percent, which is reflected in consumers’ bills.
In January, More Power reduced the power rate in Iloilo City by 53 centavos per kWh. The following month, it again reduced rates by another 50 centavos.
Khent Adenix, a 23-year-old teacher from Iloilo City, welcomed the development but hoped that the power rates would drop further.
“If we talk about the decrease in power rates, it’s good news. But still, the rates are quite high,” she told the Inquirer in a telephone interview on Thursday.
Adenix, who pays for the monthly electricity consumption of her family, said she paid around P2,700 in April and P2,100 in May.
She said, though, that her expenses for electricity still eats up “a huge chunk” of her salary.
Shanel David, 24, shared the sentiment.
“I barely noticed the drop in the power rate. The difference between my monthly bill then is almost the same as my bill nowadays,” said David, who works in a finance corporation here. Jhio Jan Navarro, Inquirer Visayas Bureau
TSB