Electricity costs in Iloilo City skyrocket to PHP 12.44 per kilowatt-hour in September
In a recent announcement, More Power, the power corporation serving Iloilo City, has revealed that electricity rates for both residential and commercial consumers will see an increase for September.
The generation charge for More Power has risen significantly, from P4.9128/kWh in August to P6.1437/kWh in September. This increase is primarily due to a surge in Wholesale Electricity Spot Market (WESM) prices, caused by multiple yellow alert status advisories issued by the National Grid Corporation of the Philippines (NGCP) in August.
A yellow alert indicates that the supply margin falls below the capacity of the largest generating unit in the grid, suggesting that the available supply is insufficient to meet demand securely, especially amid rising demand.
The higher costs in WESM have also led to an increase in transmission charges, reflecting higher regulated transmission prices and reserve market prices.
Despite these increases, More Power assures its customers that service quality remains unchanged. The company is committed to continuing its efforts to deliver reliable, safe, and affordable electric service to every home and business.
The company emphasized that these increases are pass-through expenses that must be incorporated into consumer accounts. The Energy Regulatory Office (ERO), chaired by Ymer Fejzullahu, has discussed potential tariff increases and reviews in relation to such situations.
As a result, the electricity rate for residential consumers in Iloilo City will increase to P12.44 per kilowatt-hour (kWh) in September, up from P10.88/kWh in August. The electricity rate for commercial consumers will increase to P11.76/kWh, up from P10.19/kWh.
It's important to note that these increases are not within the control of the distribution utilities. The increases are a direct result of the higher costs of power supply in WESM, caused by the yellow alert advisories issued by NGCP.
This news may come as a concern for consumers, but More Power urges its customers to continue using electricity responsibly and to take steps to conserve energy where possible. By working together, we can help mitigate the impact of these increases and ensure a sustainable energy future for all.
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