Despite an increase in its electricity rates for May 2024 billing, MORE Power continues to offer the lowest electricity rates in Western Visayas.
MORE Power in Iloilo City, despite a P1.02/kWh increase, remains the lowest in the region. The effective residential electricity rate for MORE Power, reflected on its consumers’ bills from May 18, 2024, to June 12, 2024, is P11.3263/kWh.
These changes come amidst a tight supply situation, highlighted by the “red” and “yellow” alerts declared by the National Grid Corporation of the Philippines (NGCP) in Luzon and Visayas over the past two months.
While the reasons for the rate increases among other electric cooperatives are similar, Niel V. Parcon, Vice President for Corporate Energy Sourcing and Regulatory Affairs (CESRA), explained that MORE Power has managed to maintain competitive rates due to its bilateral contracts with power generators. This strategy has limited its exposure to the Wholesale Electricity Spot Market (WESM), where prices increased from P8.67/kWh to P11.85/kWh.
“In anticipation of the increase in demand for the summer, we have secured bilateral contracts of 66%. Thus, our exposure to WESM is only 34%. In fact, our energy purchases for this billing cycle have increased by 19%," Parcon explained, emphasizing the importance of the bilateral agreements with the power generators.
Iloilo City Mayor Jerry P. Treñas recently praised this development as a significant boost for the city, anticipating an increase in investments and business activities that will bolster Iloilo City's economy.
"This is also a very welcome development for every Ilonggo household, which will no longer have to worry about high electric bills," the mayor said.