EDC and MORE Power seek nod of ERC for supply deal
BY LENIE LECTURA – DECEMBER 2, 2022
from Business Mirror
Energy Development Corp. (EDC) and MORE Electric and Power Corp. asked the Energy Regulatory Commission (ERC) to approve their 5-year power supply agreement (PSA).
The two companies filed a joint application with the ERC. They are asking the agency to allow them to implement their PSA for the supply of 20 megawatts (MW) at a levelized cost of P6.1008 per kilowatt hour.
The rate, they said, is lower by P0.2533 per kWh in the generation rates of MORE Power compared to sourcing from the Wholesale Electricity Spot Market.
“Such reduction will be enjoyed by the consumers of MORE Power should the PA be duly and timely granted,” they said.
MORE Power previously sourced a portion of its requirements from the Power Sector Assets and Liabilities Management Corp. (PSALM). A 20MW portion of MORE Power’s contract with PSALM is what is set to be supplied under the PSA with EDC.
“In the absence of a timely provisional authority, MORE Power’s captive customers would be exposed to the volatile WESM…Timely commencement of the delivery of power from EDC to MORE Power will address the power requirements and protect the end-users from high generation costs in the WESM.
This is especially true as there is no fuel cost escalation in the PSA with EDC. Further, the electricity to be supplied by EDC under the PSA is not subject to value added tax as it shall be sourced form an RE, specifically the geothermal power plant of EDC,” their application stated.
EDC operates 592MW of geothermal plants in Ormoc City, Leyte and Kananga, Leyte.
The ERC, they said, is also aware that the Negros-Cebu submarine cable of the National Grid Corporation of the Philippines was damaged in June last year. NGCP has stated that the said submarine cable will only be fully repaired in 2023.
“Without the timely intervention of the ERC, electricity consumers in Negros and Panay would suffer from very high generation rates due to the high line rental charges in the post market brought about by network congestion due to the damaged submarine cable,” they said.
These are the reasons cited by MORE Power and EDC in their application for the immediate grant of a provisional authority to allow EDC to supply power to MORE Power and consequently protect consumers in Iloilo City from the volatility of and potentially high WESM prices.
