ILOILO CITY – MORE Electric and Power Corp., this city’s sole power distributor, expects electricity rates to drop further this year.
“For six straight months, we have dropped our rates. This will continue to drop,” said Niel Parcon, MORE Power vice president for corporate planning and regulatory affairs.
A MORE Electric and Power Corp. lineman at work in Iloilo City. MORE Power’s residential rate for May to June has decreased by almost P1, from P13.2511 per kilowatt-hour (kWh) to P12.2990 per kWh. Parcon told Manila Bulletin on Thursday, June 8, that there are two major factors in the decrease of electricity rates. The biggest factor is that MORE Power is sourcing out part of its supply from the geothermal plant of Energy Development Corp. in Leyte. “The geothermal source is relatively cheaper than coal,” Parcon said. While MORE Power still uses coal-fired power, the entry of renewable source has paved the way for the VAT on the generation charge to drop to P0.1613 per kWh. The second is the drop in global coal prices. From the high of $468 per ton, it dropped to $190 to $200.
A MORE Electric and Power Corp. lineman at work in Iloilo City. MORE Power’s residential rate for May to June has decreased by almost P1, from P13.2511 per kilowatt-hour (kWh) to P12.2990 per kWh. Parcon told Manila Bulletin on Thursday, June 8, that there are two major factors in the decrease of electricity rates. The biggest factor is that MORE Power is sourcing out part of its supply from the geothermal plant of Energy Development Corp. in Leyte. “The geothermal source is relatively cheaper than coal,” Parcon said. While MORE Power still uses coal-fired power, the entry of renewable source has paved the way for the VAT on the generation charge to drop to P0.1613 per kWh. The second is the drop in global coal prices. From the high of $468 per ton, it dropped to $190 to $200.