Batelec II, Bac-Man power supply deal gets provisional nod

BY LENIE LECTURA – JUNE 15, 2022
from Business Mirror

The Energy Regulatory Commission (ERC) has granted provisional approval to the power supply agreement (PSA) between Batangas II Electric Cooperative Inc. (Batelec II) and Bac-Man Geothermal Inc. (BGI).

“The Commission expects that the provisional approval of the PSA between Batelec II and BGI will result (in) a positive development in the energy supply chain in Batelec II’s franchise area.

This will provide some relief to Batelec II’s customers as their power supply will be augmented, which will mean more stable electricity,” said ERC Chairperson and CEO Agnes VST Devanadera.

In the ERC’s Notice of Resolution, the approved PSA rate shall be P4.3767 per kilowatt hour.

The agency also directed the two firms that interest or penalty and any other charges incurred by Batelec II shall not be allowed to be passed-on to its member-consumers, and that the final generation cost that can be recovered by BGI and the contract capacity by Batelec II shall be reviewed and evaluated.

The ERC said the provisional approval is necessary in view of the fact that this will be used by Batelec II in its compliance with the requirements of the Renewable Portfolio Standards for on-grid areas. Also, this will serve as additional capacity to secure more stable, reliable and efficient source of power supply for a term of nine years, as well as at a reasonable rate.

“The Commission, however, reminds Batelec II and BGI that in the event that the final rate is determined to be lower than the provisional authority granted, the amount corresponding to the reduction shall be refunded by BGI to Batelec II, which shall thereafter be refunded to its member-consumers by crediting the same in their electric bills over a period to be determined by ERC.”