Consumers in Iloilo City have been enjoying lower electricity bills for three months in a row.
MORE Power, the city’s distribution utility, has been reducing the total average rate since November 2022.
In December, the rate was reduced by 15 centavos, followed by a reduction of 53 centavos in January and another 50 centavos this month.
In total, the reduction amounts to 1 peso and 20 centavos since December.
As of today, the total average rate for residential consumers in Iloilo City is P13.64 per kWh.
The decrease in generation charges is due to the declining prices of coal in the global market and Wholesale Electricity Spot Market (WESM), which have been declining for the past three months and are expected to continue.
The reduction in fuel prices for coal-fired generation companies is due to the continued decline in the Newcastle index, which determines the price of coal in the world market.
According to MORE Power’s Vice President for Corporate Planning and Regulatory Niel Parcon, the price of coal in the world market greatly influences their generation charge and total average rate.
“If coal price increases, their generation charge to us also increases, but if it gets lower, their rates will also decrease,” he emphasized.
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.IMT
