The aerial view of Iloilo City: its consumers are now enjoying lower electricity bills for three months in a row. (Photo by Jade Dequiña)
“Electricity can transform people’s lives, not just economically but also socially.” – Piyush Goyal
Fancy that, MORE Power, the city’s distribution utility, has been steadily reducing the total average rate since November 2022. The 15 centavos reduction in December was followed by a 53 centavos cut in January and another 50 centavos lowering this month. In total, the reduction amounts to 1 peso and 18 centavos since December, which brings to the current total average rate for residential consumers in Iloilo City to 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 they are expected to continue; and the reduction in fuel prices for coal-fired generation companies, which is brought about by the continued decline in the Newcastle index (determines the price of coal in the world market).
“The price of coal in the world market greatly influences their generation charge and total average rate,” according to NIEL PARCON, the Vice President for Corporate Planning and Regulatory at MORE Power. “If coal price increases, their generation charge to us also increases, but if it gets lower, their rates will also decrease.”
Yes, the decreasing electricity rates bring relief to the consumers’ pockets. “If this trend continues, Iloilo City consumers can expect a more stable and affordable supply of electricity in the coming months,” Mr. Parcon added. “It is also worth noting that the decrease in electricity rates doesn’t include MORE Power’s 20 MegaWatt geothermal power supply contract with Energy Development Corp, which is much lower than the coal-based supply.”