Razon-led MORE Electric and Power Corp. (MORE) has signed a power supply deal with state-owned Power Sector Assets and Liabilities Management Corp. (PSALM).
“We have a bilateral contract with PSALM. They sold it to us at very low average price,” MORE Power Spokesman Jonathan Cabrera said in a text message Monday.
The power sourced from PSALM resulted in cheaper power rates for MORE Power customers who paid 36 percent less this month.
The company said in a statement the electricity rate for residential consumers had dropped to P6.4562 per kilowatthour (kWh) in July from P10.0149 per kWh rate in June.
“MORE Power was able to directly purchase 100 percent of its needed power supply from PSALM, which operates the geothermal plant in Leyte that is a renewable energy,” said Cabrera, adding that it was cheaper to source from PSALM compared to the Wholesale Electricity Spot Market.
The company said the lower power rates will benefit consumers and business in Iloilo City amid the Covid-19 pandemic.
MORE Power President Roel Castro said the price cut will enable small businesses to resume and even expand operations, and recover losses from prolonged business closure during the lockdown.
“We have been able to find a cheap source of power for Iloilo City,” said Castro.
MORE Power had said it was considering to source power via the competitive selection process to make power rates more affordable to consumers. It is undertaking a P1.7-billion modernization project. The amount would be utilized to upgrade substations, to relocate electric posts, and to strengthen its anti-pilferage campaign.
The company is the electric distribution utility in Iloilo City by virtue of Republic Act 11212.
The franchise of MORE Power was signed by President Duterte on February 14, 2019 and will last for 25 years or until the year 2044.
MORE Power is a subsidiary of Prime Strategic Holdings Inc., formerly Prime Metroline Holdings Inc.