By Francis Allan L. Angelo
MORE Electric and Power Corporation (MORE Power) said it has slashed power rates in its first billing to Iloilo City consumers.
“We are very happy to inform the Ilonggos that our computations resulted to an effective rate of Php9.61/kWh for residential consumers. This will be the rate reflected on their first bill starting April 20, 2020,” MORE President and Chief Operating Officer Roel Z. Castro said in a press statement.
Castro said that for commercial and industrial type customers, effective rates will depend on their respective load consumption but he assured that rates will be lower.
MORE’s initial residential rate is 74 centavos less than Panay Electric Company’s (PECO) residential rate of Php 10.35/kWh back in February 2020.
How was MORE Power able to bring down electricity rates in the city?
“Our strategy was to source out a portion of Iloilo City’s electric supply from cost effective power suppliers in order to bring down the effective rate for all our customers,” Castro said.
According to Castro, MORE draws 30 percent of Iloilo City’s power supply from KEPCO SPC Power Corporation (KSPC) in Cebu, Aboitiz Power Renewables, Inc. (APRI) in Luzon, and the Wholesale Electricity Spot Market (WESM) where electric supply prices are lower.
The remaining 70% of the City’s supply is sourced from Panay Energy Development Corporation (PEDC) and Panay Power Corporation (PPC), both located in LaPaz, Iloilo City.
“MORE was able to receive the billing from our power suppliers on April 15 wherein the covered period started in February 29,” Castro added.
Castro said MORE’s receipt of the power supply billing from PEDC and PPC disqualifies PECO from billing consumers from February 29 and onwards.
“It is important that our consumers should be guided that PECO has no basis to charge them from February 29, 2020 and beyond. Consumers who receive PECO bills overlapping the said date should report to us immediately,” Castro said.
Charges from power generating companies and the WESM form part of the generation charge which is indicated in each consumer’s electric bill.
Generation charge is a pass-on charge remitted to power suppliers and, on average, takes up 60% of a consumer’s total electric bill.
“Distribution utilities that strategize on how to source out electric supply from cost effective power suppliers are responsible Distribution Utilities that understand their commitment to the consumers. Truly enough, MORE assures the Ilonggos that we will continue to do so in the next 25 years,” Castro added.
The Enrique Razon-led power utility said consumers will receive their first MORE Power bill on April 20, 2020 which will cover their consumption from February 29, 2020.
Due to recent restrictions by the City Government’s orders on the weekend lockdown, consumers will receive their first bill two days later, instead of April 18, 2020.
MORE also announced that due to the COVID-19 crisis, they will give a 40-day grace period or allow up to May 28, 2020 for their consumers to pay their first bill.
