ILOILO CITY — Residents are facing a new financial challenge as MORE Power, the city's sole power distributor, has announced an increase in residential electricity rates by P1.02 per kilowatt-hour (kWh). This means that from May 18, 2024, to June 12, 2024, the effective residential electricity rate will be P11.3263/kWh.
MORE Power explained that the hike was necessary due to the rising average nodal prices of the Wholesale Electricity Spot Market (WESM), which jumped from P8.67/kWh to P11.85/kWh. This increase in the cost of electricity generation has a direct impact on the overall price consumers pay.
The situation is further complicated by the thin supply of electricity, 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. These alerts indicate a strained power supply, which contributes to higher prices.
Additionally, the higher generation charge has resulted in increased taxes and system loss rates. Although it's worth noting that the 12-month average system loss slightly decreased from 5.50 percent to 5.44 percent, this minor improvement does little to offset the higher costs overall.
More Energy Sources
On a positive note, the Distribution, System, and Metering (DSM) charges — the only part of the bill that goes directly to MORE Power — have remained unchanged. This means that the increase is driven by external factors beyond the distributor's control, such as market prices and supply issues.
For many households, this rate hike will mean tighter budgets and potentially difficult choices. Electricity is a basic necessity, and any increase in its cost can significantly affect daily living expenses. Residents need to be mindful of their electricity usage and consider ways to conserve energy, which could help mitigate the impact of these higher rates.
Moreover, this situation highlights the need for more sustainable and reliable energy sources. Investing in renewable energy and improving the efficiency of the power grid could help stabilize prices and ensure a more consistent supply of electricity in the future.
Working Together
In the meantime, residents can reach out to MORE Power for any questions or concerns about their bills and look into energy-saving measures to manage their electricity consumption more effectively.
While the rate increase is unwelcome news, understanding the reasons behind it and taking proactive steps can help residents navigate this challenging period.
More than ever, it's crucial for both the power provider and the community to work together to find solutions that will lead to a more stable and affordable energy future for Iloilo City.
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