MORE Power Announces Power Rate Increase Amidst Struggle with Slim Power Supply Margin from the Grid
The recent yellow alert status advisories from the National Grid Corporation of the Philippines last August have triggered an increase in the cost of power in the spot market. This September, consumers will see an increase in their power bills as a result of last month’s thin supply margin versus demand.
For this month, the rate for residential consumers is ₱12.44/kWh, reflecting an increase of ₱1.56/kWh from August’s electricity rate of ₱10.88/kWh. The commercial rate is ₱11.76/kWh, up from ₱10.19/kWh in the previous month.
This rate adjustment for the billing cycle in September was due to various factors beyond the control of the distribution utilities.
Primarily, higher cost of power supply in WESM. When NGCP issues a yellow alert, this means that the supply margin falls below the capacity of the largest generating unit in the grid. This indicates that the available supply is insufficient to meet demand securely, especially amid rising demand.
Generation and transmission charges also went up, reflecting higher regulated transmission and reserve market prices.
This month, MORE Power’s generation charge increased to P6.1437per kWh, from P4.9128 per kWh last month. This increase is mainly attributed to the increase in WESM prices.
These are pass-through expenses that distribution utilities are required to incorporate into the consumers’ accounts.
Despite all these, MORE Power’s service didn’t change. The company assures the public that it is working hard to ensure that it continues to deliver reliable, safe, and affordable electric service to every home and business.