Power consumer warns of higher electricity rates in Bantayan on three supply contracts

By Manila Standard Business – March 02, 2021 at 07:35 pm

A power consumer warned that three supply contracts will run simultaneously for several months this year, resulting in expensive and surplus power in Bantayan Island which will be partly subsidized by consumers in other parts of the country.

Romeo Junia, an intervenor in two cases filed with the Energy Regulatory Commission involving the power supply in Bantayan Island, said consumers would pay for expensive but unnecessary surplus power if the ERC would approve Bantayan Island Electric Cooperative Inc.’s two new power supply contracts.

Junia said BANELCO general manager Lee Rivera confirmed in an ERC hearing on February 26, 2021 that all capacities contracted by BANELCO under its power supply contracts would have to be paid by consumers.

A resident of Antipolo City, Junia is a captive residential customer of Manila Electric Co. He said he is among electricity end-users who pay the Universal Charge for Missionary Electrification that subsidizes the power supply agreements of electric cooperatives such as BANELCO.

He is referring to ERC Case No. 2020-013RC or BANELCO’s application for approval of a 12-month interim power supply agreement and ERC Case No. 2020-032RC for a 15-megawatt, 15-year power supply agreement, both with Isla Norte Energy Corp. BANELCO also has an ongoing power supply contract with Bantayan Island Power Corp. that would not end until November 2021.

Junia said this means there would be three supply contracts running simultaneously from March to November this year.

Junia said Rivera testified that under the PSA awarded to INEC in February 2020, the capacity recovery fee for INEC’s guaranteed dependable capacity of 15 MW would be paid in full during the 15-year run of the PSA, regardless of BANELCO’s actual capacity offtake or use under the contract.