Iloilo City consumers to enjoy lowest power rate of P6.38 per kWh this September 2021

MORE Power P6.38 rate in September is the lowest in the country.
  • MORE Power reduced Iloilo City electricity rate to record low of P6.38 kWh for residential consumers.

  • ERC has ruled in favor of consumers, stopping the collection of congestion charges brought about by damaged NGCP cable.

Once again, More Electric and Power Corporation (MORE Power) was able to bring down the electricity rate for Iloilo City consumers! From P7.99 per kWh in August, the rate for residential customers drops to P6.38 per kWh this September 2021.

MORE Power significantly reduced the power rate in the city last July 2021 with a record low of P6.45 per kWh rate for residential consumers, the lowest in the country that month. However, the rate slightly increased to P7.99 per kWh in August due to high line rentals brought about by the damaged submarine cable of the National Grid Corporation of the Philippines (NGCP) connecting Cebu and Negros lines.

Contractors of the Department of Public Works and Highways (DPWH) caused the cut in the submarine cable while doing amphibious dredging in Amlan, Bohol, but the additional fees were charged to the distribution utility and passed on to consumers.

Acting to protect the welfare of the consumers, Iloilo City distribution utility filed a complaint to the Energy Regulatory Commission, saying that it is unfair for the consumers to bear this ‘unreasonable’ burden that is not their own making.

“We urgently urged the Commission to look into the burden caused by the damaged submarine cable as this will continuously rip the consumers by paying exorbitant electricity rates,” said MORE Power President and CEO Roel Castro.

Iloilo City Mayor Jerry Treñas, Iloilo City Representative Jamjam Baronda, the Department of Energy, Congressman Mike Gorriceta, along with various consumer and business groups also wrote separate letters to the Commission airing the same sentiment.

ERC ruling pro-consumers

ERC responded favorably to the complaints, ordering the Philippine Electricity Spot Market Corporation (PESMC) to stop collecting higher line rentals and other charges which lead to increase electricity rates for consumers of distribution utility in Panay and Negros.

In her letter addressed to PEMSC president Leonido Pulido III posted by MORE Power Iloilo, ERC chair and CEO Agnes Vicente S. Torres-Devanadera said that these charges should not be charged to consumers.
“The damaging of the Cebu-Negros Submarine Cable, was not caused by the consumers, but rather by negligence, which responsible parties should be made to account for. As such, the Commission is of the view that the congestion charges, and other charges, that are attributable to the incident, should not be charged to the consumers,” Devanadera said.

In compliance with the order of ERC, MORE Power acted swiftly to bring back the rates to normal, deducting congestion charges and other applicable charges attributable to the damaged NGCP cable incident.

For September 2021 billing, residential consumers in Iloilo City will only be charged P6.38 per kWh. Clients under the Commercial and Power/Industrial categories will get P6.11 per kWh and P6.05 per kWh, respectively.

“For the September 2021 billing month, the estimated 3,000 customers who already received their bills on September 20 – 22, 2021 will be recalled and we will issue a revised bill to all our consumers reflecting the corrected generation charge and total average rates,” MORE Power said in a statement.

MORE Power will also issue refunds for the July and August 2021 billing months, but the distribution utility will wait for ERC’s directive on how to do it.

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