By Rjay Zuriaga Castor
MORE Electric and Power Corp. (MORE Power) warned consumers in Iloilo City of an increase in power rates for the July billing cycle.
The electric distribution utility announced on Thursday that the anticipated rate increase is due to the “artificially low rates” in June.
“The average residential rate will increase to P12.8566 per kilowatt-hour (kWh) in July, primarily due to the increase in the generation charge,” the company stated.
MORE Power explained that the generation rate is up by P3.5739, from the June rate of P3.9833 to P7.5572 this July.
The low rates in June were attributed to the deferment of the Wholesale Electricity Spot Market (WESM) portion of the generation charge in compliance with the latest order from the Energy Regulatory Commission (ERC).
The deferment aimed to lessen the financial impact on consumers amid a series of red and yellow alerts in the Luzon and Visayas grids.
Consequently, a portion of the WESM generation cost will be added to the July, August, and September 2024 bills.
“Last month’s rates were supposed to be just slightly higher than May. However, MORE Power reduced its rate by P2.5514 per kWh, resulting in a rate of P8.7749 per kWh, following the ERC’s order to postpone the collection of WESM charges,” the statement added.
Niel V. Parcon, Vice President for Corporate Energy Sourcing and Regulatory Affairs of MORE Power, noted that the increase in July was anticipated due to higher generation charges.
Parcon explained that without the deferment, MORE Power’s residential rate in June would have been P11.8642 per kWh, a slight increase from May’s rate of P11.3263 per kWh.
“Our average residential rate could have dropped to P11.6625 per kWh in the July billing cycle without the deferment,” Parcon added.
The average electricity rate in MORE Power’s June billing month was P8.7749 per kWh, which was P2.5514 per kWh lower than the residential electricity rate in May’s bill.
Based on available comparative data, the Iloilo Electric Cooperatives II posted the highest residential rate this July at P16.2561 per kWh, followed by the Negros Occidental Electric Cooperative at P16.1306 per kWh, and Capiz Electric Cooperative, Inc., at P14.6216 per kWh.
