ILOILO CITY — At a moment when the world expected electricity bills to climb, Iloilo City's power distributor delivered the opposite. MORE Electric and Power Corporation announced on May 19, 2026 that it had reduced its residential electricity rate by ₱0.27 per kilowatt-hour, bringing the May billing down to ₱11.8710 per kWh from ₱12.14 per kWh in April. The commercial rate dropped even further, to ₱11.00 per kWh from ₱11.27 per kWh. The cuts landed in the same month that the National Grid Corporation of the Philippines issued multiple yellow and red alerts across the Visayas grid, signaling potential supply shortages. For the property sector, the timing could not have been more consequential.
The reduction was achieved despite a ₱0.05 per kWh increase in generation charges, driven by higher coal prices, rising freight costs for imports, inflation, and foreign exchange fluctuations that pushed prices at the Wholesale Electricity Spot Market to ₱4.47 per kWh. MORE Power President and CEO Roel Castro attributed the net decrease to a sharp drop in transmission charges—down ₱0.26 per kWh from the previous month—and a ₱0.027 per kWh reduction in system loss charges. The utility's overall system loss improved from 5.37 percent to 5.20 percent, reflecting gains in operational efficiency that are now translating directly into consumer savings. "We strive to provide our consumers with the best electricity rates despite the challenges we are currently facing," Castro said. "MORE Power remains steadfast in ensuring the welfare of Ilonggos by delivering quality and affordable electricity to every household and establishment."
A Rate Cut That Protects the Property Market's Foundation
For Iloilo City's property market—which Colliers Philippines recently confirmed now leads all regional hubs outside Metro Manila in total transaction volume—the rate reduction functions as a structural stabilizer. Residential condominium take-up in the city has reached 89 percent, while house-and-lot absorption stands at a regional high of 96 percent. Megaworld Corporation alone controls 48 percent of the office market across 13 towers with a combined gross leasable area exceeding 205,000 square meters. These figures describe a real estate market operating at near-maximum capacity, and every percentage point added to the cost of powering those buildings erodes the margins that sustain them.
MORE Power's ability to reduce rates despite rising generation costs stems from its strategy of sourcing cheaper power under bilateral supply contracts, effectively insulating consumers from the full impact of spot market volatility. The approach has particular resonance for the commercial tenants—BPOs, global capability centers, and retail establishments—whose lease decisions increasingly factor in operational overhead. A building whose electricity costs are cushioned by a utility that negotiates bilateral contracts is a building that can offer tenants a more predictable cost structure. Castro confirmed that the company continues to monitor price and supply conditions heading into June, following the NGCP's issuance of yellow and red alerts that signal potential supply shortages relative to demand. For the developers and investors who have made Iloilo the country's most active regional property market, that vigilance is itself an asset—a utility that treats rate stability not as a marketing slogan but as an operational discipline.
Commercial Rates at ₱11/kWh: A Magnet for Business Investment
The commercial rate reduction to ₱11.00 per kWh carries particular weight in a city that has just outpaced Metro Cebu in occupied office transactions for the first time. Iloilo Business Park, Megaworld's 72-hectare township, maintains an office occupancy rate of nearly 85 percent, surpassing the national industry average of 80 percent. Its newest office tower, the International Corporate Plaza, has seen property values appreciate by 43 percent to approximately ₱231,000 per square meter, with 65 percent of the building already sold. Each of these figures describes a commercial property market whose trajectory is sensitive to operational cost variables—and electricity is the single largest variable in that equation.
The rate cut arrives amid a broader energy emergency that has seen the national government declare a state of crisis under Executive Order No. 110, triggered by the ongoing Middle East conflict that has rattled global energy markets and pushed up crude oil benchmarks. That MORE Power has managed to reduce rates in this environment—while other utilities across the country have been forced to pass through generation cost increases—distinguishes Iloilo City from competing investment destinations. A BPO locator weighing a lease in Iloilo against a comparable space in a city where rates are climbing will find in MORE Power's May billing a quantifiable reason to choose the former.
The rate reduction also reinforces the city's broader affordability narrative. Iloilo City has been recognized as an ASEAN Clean Tourist City, a UNESCO Creative City of Gastronomy, and Western Visayas' top MICE destination. Its recently launched Living Heritage Museum Tour, the ILOMOCA-hosted Omocha Japanese toy exhibition, and the growing calendar of festivals and events each contribute to a visitor economy that depends on affordable hospitality operations. Hotels, restaurants, and retail establishments that saw their commercial rates drop from ₱11.27 to ₱11.00 per kWh in May are now operating with a cost structure that makes Iloilo more competitive as a destination—not only for tourists but for the convention organizers and corporate event planners whose booking decisions can fill a hotel for an entire week.
