Iloilo distribution utility MORE Electric and Power Corp. (MORE Power) has implemented six consecutive power rate reductions since the start of the year.
The latest cut nearly total P1 to P12.29 per kilowatt-hour (kWh) for June from P13.25 per kWh in May.
The rate cut was due to the decrease in generation cost made possible by the inclusion of geothermal power from Energy Development Corp. to the power mix that cut the value added tax on the generation charge to P0.1613 per kWh.
Also, the drop in the price of electricity at the Wholesale Electricity Spot Market and the price of coal and transmission charge contributed to the reduction in its electricity charges.
MORE Power said the reduction in charges helped minimize the system loss charge from 7 percent to 6.49 percent.
Recently, the utility firm initiated a bill deposit refund for customers.
Bill deposits are paid when consumers apply for service connection but returned after three years provided consumer pays on time and has no record of disconnection.
Under the law, customers apply for a bill deposit refund but in this case MORE Power initiated the program by informing consumers.
Roel Castro, MORE Power president and chief executive officer, said the voluntary return of the bill deposit may be imitated by rival distribution utilities.
Castro said MORE Power has P5 million in bill deposits for refund and urged customers to pay on time to qualify.
