Primelectric: Cheap supply deals keep power rates low

MANILA, Philippines — Primelectric Holdings Inc. (PHI) is banking on its low-cost power supply deals to keep electricity rates low across its Visayas franchise areas amid the ongoing energy emergency.

In a statement, the company said its three power utilities in Iloilo, Negros and Bohol delivered the lowest electricity prices across the region.

“While global energy markets remain unpredictable, our priority has always been to deliver stable and more affordable electricity to the communities we serve,” Primelectric president and CEO Roel Castro said.

Bohol Light Inc., for instance, trimmed its power rates by around P2 per kilowatt-hour this month, with average residential and commercial rates going down to around P10.5 and P9.9 per kWh, respectively.

The downward adjustment stemmed from lower generation and transmission charges, reduced line rental costs and the suspension of the green energy auction allowance (GEA-All) collection.

Generation charges refer to the cost of power procured by a utility, while transmission charges cover the cost of delivering electricity from power plants to distribution networks.

GEA-All, equivalent to P0.0371 per kWh, is a uniform charge that supports the development of renewable energy projects across the country.

Similarly, MORE Electric and Power Corp. also announced a reduction in its residential rate in Iloilo to P11.87 per kWh in May from the previous month’s P12.14 per kWh.

The lower rate was attributed to a decline in transmission and system loss charges, which offset the slight increase in generation charges.

Meanwhile, consumers served by Negros Electric and Power Corp. saw a residential rate of P11.38 per kWh in May, down from April’s P12.25 per kWh.

Primelectric said Negros Power’s rate was the “lowest” among major power distributors on Negros Island.

The utility leaned on power supply from generation companies and the Wholesale Electricity Spot Market, the centralized venue for electricity trading.

“These rate reductions reflect our efforts to cushion households from volatility in fuel and commodity markets. We are committed to ensuring that our customers feel the benefits of efficient procurement and prudent contracting,” Castro said.