Iloilo city: Electricity rates in Iloilo City have decreased this December, offering relief to consumers during the holiday season.

According to Philippines News Agency, the reduction is attributed to a decline in electricity demand.

The data reflects a decrease in the residential rate by PHP0.5081 per kilowatt-hour (kWh), while the commercial rate saw a reduction of PHP0.5080 per kWh. This adjustment brings the cost down to PHP11.3477 per kWh from the previous month's rate of PHP11.85 per kWh.

'This adjustment was driven by a drop in electricity demand, which increased the supply margin and helped lower the average Wholesale Electricity Spot Market (WESM) rate. As demand went down, more power became available, leading to lower average WESM prices,' the power distributor said in a statement Sunday afternoon.

Transmission charges also saw a decline, reducing to PHP1.7918 per kWh from last month's PHP1.8612 per kWh, due to a decrease in the cost of regulated charges and ancillary services from the reserve market. Additionally, the system loss rate has decreased, currently standing at PHP0.4086 per kWh compared to PHP0.4512 per kWh last month, attributed to lower generation and transmission costs.

The distribution, supply, and metering charges have remained stable without any increase. JM Zaporteza, the firm's chief operations officer, assured customers of the company's commitment to sourcing the lowest electricity prices available at any given time.

Last month, Iloilo City faced an increase in electricity bills due to several factors, including limited power supply caused by outages in Cebu and Mindanao power plants, a rise in the Feed-in-Tariff Allowance, and the implementation of the universal charge for environmental charge.