By Rjay Zuriaga Castor
The Sangguniang Bayan of Pavia has backed the proposal of MORE Electric and Power Corp. (MORE Power) to expand its services to their town amid ongoing calls for improved service and more affordable rates.
The Pavia SB on Wednesday, August 14, unanimously approved a resolution urging MORE Power to swiftly begin expanding its operations in Pavia and to consider a Joint Venture Agreement (JVA) with Iloilo Electric Cooperative (ILECO) I.
The resolution cited MORE Power’s expansion into areas on Negros Island through a JVA with Central Negros Electric Cooperative (CENECO) under the Negros Electric and Power Corporation franchise.
Through the JVA, MORE Power will assist CENECO in improving its power supply and distribution services to its 210,000 customers across the cities of Bacolod, Silay, Talisay, and Bago, as well as the towns of Murcia and Don Salvador Benedicto.
The resolution also emphasized that MORE Power offers significantly lower electricity rates compared to ILECO I.
“The rate of MORE Power for the residential class has consistently been lower than that of ILECO I over the last 12 months, and the generation rate of MORE Power has also consistently been lower than ILECO’s for the same period,” the resolution stated.
A report from the Iloilo-based Institute of Contemporary Economics revealed that residential electricity rates in Iloilo City and province increased from August 2023 to July 2024, with MORE Power maintaining lower rates compared to the ILECOs.
In July 2024, MORE Power’s rate was 12.86 P/kWh, while ILECO 1, 2, and 3 reported rates of 14.85 P/kWh, 16.86 P/kWh, and 13.33 P/kWh, respectively.
The higher costs are mainly due to rising power generation expenses, but MORE Power’s rates remain lower due to its 33.4 percent lower acquisition costs for power supply, resulting in a 16.1 percent average difference over the past year.
The approval of the resolution comes in the heels of the recent Supreme Court ruling that clarified that “electric cooperatives do not have a constitutional right to an exclusive franchise within their coverage areas.”
The ILECOs had previously filed a petition challenging the validity of Republic Act (RA) No. 11918, which effectively expanded MORE Power’s franchise into areas within ILECOs’ coverage.
The SC noted that without competition, ILECOs could easily dictate electricity prices, and the entry of another player would benefit consumers.
Following the SC’s ruling, MORE Power is set to expand its services to 15 towns, including Alimodian, Leganes, Leon, New Lucena, Pavia, San Miguel, Santa Barbara, and Zarraga in the 2nd District of Iloilo, as well as Anilao, Banate, Barotac Nuevo, Dingle, Duenas, Dumangas, San Enrique, and Passi City in the 4th District of Iloilo.
Iloilo 2nd District Representative Michael Gorriceta and 4th District Representative Braeden John Biron also supported MORE Power’s expansions in their areas through House Bill 10306, which is now RA 11918.
