ILOILO City – Beginning next month, the electricity rate in this city will increase by 47 centavos.
This is a small price to pay for a much better power service.
“Amo gid man ina. Gusto ta sang nami nga serbisyo, syempre bayad man ta sa ginagastos nila,” said Jerry Villanueva, bike shop owner from Arevalo District.
The Energy Regulatory Commission (ERC) approved MORE Electric and Power Corporation’s (MORE Power) application for rate increase to recoup expenses in the improvements introduced to power distribution services here, said Niel Parcon, the power firm’s Corporate Planning and Regulatory Affairs head.
“Nami man serbisyo sang MORE, magluwas nga nagbarato sila umpisa last year kumparar sa dati nga PECO (Panay Electric Company). Pasalamat gihapon kami ah,” said Villanueva.
For his part, taxi driver and power consumer Anthony Dequiña said the improved and much efficient power service by the city’s sole power distributor justify in increase.
“Dako ang ginbag-o sa serbisyo sang kuryente dire sa city umpisa nga nag-operate ang MORE. Gani okay lang na ang 47 sentimos nga dugang agud masustiner nila ang manami nga serbisyo,” said Dequiña.
The ERC order approving the 47-centavo increase per kilowatt-hour (kWh) of Distribution, Supply and Metering (DSM) rate was dated June 8, 2022.
Despite the increase in the total average rate, MORE Power’s Parcon said they remain to have the lowest power rate in the country; its new rate will just run around P8 per kilowatt hour if implemented next year.
He also explained that power charges are divided into three – Distribution, Transmission and Generation.
“Amo na ang ginatawag naton nga distribution charge, amounting to around 47 centavos average increase for all rate classes. Ini sa tanan nga konsumidor whether residential, commercial or industrial. Nag-apply kita around 55 centavos pero ang gin-approve mga 47 centavos lang nga igapatong sa existing average charge nga P1.30,” Parcon said.
The power utility applied for an additional DSM rate because of the Emergency Capital Expenditure (CAPEX) budget it spent during the start of its operation in 2020, it added.
MORE Power spent almost one billion pesos out the approved P1.33 billion so it could rehabilitate the city’s power distribution network.
The CAPEX budget was specifically spent to rehabilitate power substations, procure additional 10MVA Mobile substation at Megaword, replace around 20,000 defective meters, 600 distribution transformers, and 2,000 old posts, among others.
Parcon said these improvements dramatically reduced unscheduled power interruptions and ensured Ilonggos with reliable power supply.
MORE Power was also able to lower systems loss from 28 percent to just seven percent through an aggressive campaign against power pilferage.
Last week, MORE Power president and chief operating office Roel Castro announced the approval of the additional P1.1-billion budget for the modernization of their facilities for the next three years.
Three more substations will be added as part of the preparation for power demand of the city and this will be stationed at Megaworld and Arevalo district while the other mobile substation will be used to further rehabilitate the existing substations.
Moreover, all substations and feeders will be connected for looping system and a Supervisory Control and Data Acquisition (SCADA) systems will be installed so that the monitoring of the facilities will already be digital./PN
