MORE Power further brings down rates in Iloilo

MANILA, Philippines — For the sixth consecutive month this year, MORE Electric and Power Corp. was able to bring down the cost of electricity it provides to its customers in Iloilo City.

The Razon-led company said the residential rate for the current billing month has declined by almost P1 to P12.2990 per kilowatt-hour (kWh) from P13.2511 per kWh.

“This is the sixth straight month that MORE Power is reducing its rates,” it said.

It attributed the drop in charges to the decrease in generation cost, which stemmed from the inclusion of geothermal to the power supply mix made by Lopez-owned Energy Development Corp.

The entry of renewable energy suppliers into the supply mix has paved the way for the value-added tax (VAT) on the generation charge to drop to P0.1613 per kWh.Geothermal power is a renewable energy source that is not only cost effective but also has many environmental benefits.

The spot market price in the Wholesale Electricity Spot Market (WESM), the drop in the price of coal, as well as the transmission charge which went down to P0.7226 per kWh from P0.9057 per kWh last year, also contributed significantly to the decrease in electricity charges last month.

MORE Power said the drop in charges also led to a decrease in the system loss charge from seven percent to 6.49 percent, which also helps lower customers’ bills.

Just recently, MORE Power initiated a bill deposit refund to their customers, an initiative lauded by the Energy Regulatory Commission (ERC).

The bill deposit is what consumers pay when they apply for their electric meter.

In accordance with Article 7 of the Magna Carta for residential electric consumers, the bill deposit must be returned by distribution utilities (DU) after three years or 36 months provided that the consumer pays on time and has no record of disconnection.

Pursuant to the said law, the customer must apply for a bill deposit refund, but in the case of MORE Power, it was the one who took the initiative by informing the customer that they can already process their refund.

MORE Power president and CEO Roel Castro said the voluntary return of the bill deposit is in their desire to be an example to other distribution utilities (DUs).

He added that MORE Power has a P5 million fund for bill deposit refunds and urged customers to pay on time to qualify for the refund.

ERC Commissioner Alexis Lumbatan said it is rare for distribution utilities to return a bill deposit refund, noting that such a move is a “milestone” that should be emulated.