ILOILO CITY – The Sangguniang Panlungsod (SP) will help MORE Electric and Power Corporation (MORE Power) appeal to the Energy Regulation Commission (ERC) to fast-track the approval of the power distributor’s five-year supply agreement with the Energy Development Corporation (EDC).
Under the contract, EDC will supply 20 megawatts (MW) of geothermal power to MORE Power.
According to Councilor Romel Duron, chairman of the SP committee on energy and public utilities, they will pass a resolution on this probably next week.
MORE Power president and chief executive officer Roel Castro emphasized that they are finding ways to lower their rate and contracting EDC is one of these.
“If geothermal (power) comes in, (the rate) would go down probably by over a peso,” he told the legislative body.
MORE Power also tasked a 24/7 trading team to monitor the pricing at the Wholesale Electricity Spot Market (WESM) and will purchase from there if prices are cheaper.
Yesterday, Castro explained to the SP the need to increase MORE Power’s power rate.
For one, he said the increase is due to the change in power suppliers from PSALM (geothermal) to a coal power supplier.
PSALM’s contract with MORE could not be extended since its cooperation period to administer ended in July 2022.
MORE Power consumers were spared from increasing coal prices beginning the last quarter of 2021 until September 2022 or for a total of 14 months; the power utility was able to maintain the low electricity rate as a result of that PSALM contract.
The increase in electricity rate in September this year was primarily hinged on the increase in the generation rate.
Castro added that the electricity rate can go back to pre-pandemic levels only if the NewCastle Coal Index goes back to around $60/metric ton and if the exchange rate goes back to around P54/dollar.
Due to these factors and for the medium to long term, MORE Power is changing its generation mix to favor renewable energy for the following reason: the generation rate is flat over the years and is not subject to indices, said Castro.
“These increases are already the effect of what is happening worldwide. I think nakaligtas tayo ng one year when we were able to get the PSALM contract when everybody were already paying higher rates. We were able to provide that savings to the consumers. However, we are asking for understanding naman na we are trying to do everything… not only better prices to consumers but continue with the better services,” said Castro.
SATISFIED
Duron expressed satisfaction on the explanation of MORE Power.
“Personally I am satisfied man sang explanation nila… We invited them to shed light,” he said.
Duron also lauded the city’s sole power distributor for its P1.9-billion investment.
“I think there is really a great improvement, ugaling sin-o man abi maghuna-huna magtaas tanan, oil prices, dollars,” he added.
Councilor Sedfrey Cabaluna echoed the same sentiment.
“Gapasalamat gid kami sa pagbatun sang imbitasyon especially nagkadto gid di si Mr. Roel Castro to answer our questions, improtante maklaruhan. Siyempre increases nabatyagan gid sang tanan nga pumuluyo, it’s vital that they understand also kung ano ang rason at the same time ano ang plano ubrahon sang MORE so that in the future ma-address naton ang rising prices of electricity. In general, we appreciate the efforts to improve the services and hopefully mapadayon para mas maayo ang serbisyo ilabi sang electricity nga madala di sa syudad,” said Calabuna.
Lucy Francisco, spokesperson of Bayan-Panay and regional chairperson of Gabriela (Panay and Guimaras), also expressed satisfaction on the explanation of MORE Power emphasizing that the increase in prices of oil and coal in the world market is beyond the control of the distribution utility.
“Isa man ka nakita bilang representative kami sang Bayan kag sang organization man sang kababainhan, na-enlighten man kami why nag-increase ang price kag may period man didto nga nagnaba ang presyo sang per kilowatt hour sang MORE Power nga rate kag gin-explain man nila nga sa system loss wherein naga-suffer kita nga consumer nga 6.75% lang ang ginabalik sa amon sa konsumedor, kag ang sobra sina kung mag-increase man gina-shoulder sang MORE Power. So at least ang isa ni ka pamaagi, na-enlighten kami sa part sang consumers kag bukas man sila if we have some questions nga mapalab-ot sa ila kumpanya. I hope nag-commit man sila nga despite nagtaas ang mga presyo beyond their control sa world market, ang ginakuhaan sang coal nagtaas 60%, ang gina-use naton 20% lang sa renewable, sa geothermal kag ang the rest sa renewable,” she said.
Franciso is hopeful that MORE Power will continue its efficient service to the consumers.
“Mas maayo man nga napaathag. Bilang kami nga ara sa organization, ma-explain man namon sa pumuluyo nga amo ini kag watchful lang ta. Mas maayo gid man nga from time to time ginapaathagan ang mga consumers para indi na mag-create sang question, pagbatikos sa ila. Pati ikaw na-enlighten just like what we have this morning. I hope their services will continue kag mas mapaayu pa gid nila ang serbisyo kapin pa gid maghatag lighting sa mga streets kag abtik nga paghatag sang ila serbisyo especially kung mag-trip off.”/PN
