More Electric and Power Corporation (MORE Power) has fulfilled its promise of lower electricity costs for Ilonggos by charging the lowest rate in the country this July 2021.
The Iloilo City’s power distribution utility (DU) announced in an online press conference Thursday that their electricity rate will drop to the lowest ever of P6.45/kWh for Residential consumers this month. It will stay around that mark until December 2021.
The July rate is P3.55 lower than the previous month’s P10, the biggest drop since MORE Power took over. It is also the lowest rate all over the country for the month.
MORE Power was able to make this biggest power rate reduction in the city by being an active participant in the trading of electricity in the open market. The DU is now directly purchasing 100 percent of its power supply connection from the grid since it energized its new 69kV switching station in Banuyao, Lapaz last May 26.
This enabled the power company to find the best power supply rate for Iloilo City.
“We were able to find a very cheap source of power and they have the volume that is enough for Iloilo City, at a price that’s really one of the lowest that I have seen in the industry, ” MORE Power President and COO Roel Z. Castro said.
Despite numerous price spikes in the Wholesale Electricity Spot Market (WESM), MORE Power was able to bring down the blended generation rate by a significant decrease of P2.5/kWH.
Also, the competitive Time Of Use-rates from their source Power Sector Assets and Liabilities Management (PSALM) Corporation (renewable Geothermal generating plant in Leyte), positive Line Rental from Leyte power source, and positive Net Settlement Surplus cushioned the impact of very high WESM prices to the total generation rate of MORE.
How much will be the savings of Ilonggo consumers with this price drop? A typical household consuming 300kWh can expect a savings of about P1,067.64 in their July electricity bill, as the average rate for residential consumers of MORE decreased by 3.5588 Peso per kWh.
Check the table below for reduced power rates in different classes.