MORE Power President Roel Castro Addresses Concerns on Power Rates: In a radio interview on RMN Iloilo with Radyoman Don Dolido and Radyoman Ronel Sorbito, More Electric and Power Corporation (More Power Iloilo) President Roel Castro addressed issues surrounding the distribution utility’s power rates.
On the disparity of power rates between Iloilo City and provincial areas. It may be recalled that Iloilo City has the cheapest power rate in major Visayan cities. In a comparative table of power rates covering April this year, MORE Power is clearly way ahead of its league leaving a clear gap between it and its counterparts, Central Negros Electric Cooperative (CENECO) and Visayan Electric Company (VECO) by registering a P10.28 per kWh-rate while the two others, charged P11.11 per kWh and P11.94 per kWh, respectively.
Moreover, the residential rate as of July 2021 has plummeted to Php 6.4 kWhr from Php 10.014 kWhr in June. Despite numerous price spikes in the Wholesale Electricity Spot Market (WESM), they were able to bring down the blended generation rate by a significant decrease of P2.5/kWH. Read: Iloilo City Now Has Cheapest Power Rates
This development caught the attention of neighboring areas and, according to the interview with RMN, has raised questions on whether or not More Power can expand its services to neighboring towns. According to Castro, there is still yet a need to study and assess the impact of the rates on consumers.
“Kung kaya natin napababa ang rates sa Iloilo City, siguro after we do our economic study, baka pwede rin natin mapababa ang presyo sa nearby municipalities. But we’re still doing economic analysis,” states Castro during the interview.
Sustaining power rates in the long run. Castro was also asked about the ability of More Power to sustain power rates in the long run. He says that although power rates may vary per month, it will still be cheaper compared to other distribution utilities.
“The prices on electricity will definitely vary month per month. It can go up. It can go down. But what is important is that the base price is on the lower side compared to the base price of other DUs,” adds Castro.
Castro appends the power reduction to More Power becoming an active participant in the trading of electricity in the open market. The DU is now directly purchasing 100 percent of its power supply connection from the grid since it energized its new 69kV switching station in Banuyao, Lapaz last May 26.
Also, the competitive Time Of Use-rates from their source Power Sector Assets and Liabilities Management (PSALM) Corporation (renewable Geothermal generating plant in Leyte), positive Line Rental from Leyte power source, and positive Net Settlement Surplus cushioned the impact of very high WESM prices to the total generation rate of MORE. Related: Everything You Need to Know as a MORE Power Consumer
View the full interview here: