Cebu office tower taps retail power to manage costs

CEBU, Philippines — JDC One Acacia Corp., operator of JEG Tower in Cebu City, has secured a fixed electricity rate for two years under the country’s retail power market, giving the commercial building more certainty over one of its biggest operating costs.

The company signed a retail electricity supply agreement with COREnergy, a subsidiary of Vivant Energy, as it shifts to the Retail Competition and Open Access (RCOA) framework. JEG Tower contracted 0.6 megawatt of electricity capacity under the agreement.

The move comes as commercial property operators face growing pressure to control costs while providing reliable services to tenants.

“Electricity is fundamental to how we operate our building and serve our tenants,” JDC One Acacia President Marivic Sembrano said.

“By taking a more strategic approach to energy procurement, we’re able to better manage one of our major operating costs while continuing to provide a reliable, comfortable and productive environment for the businesses that have chosen JEG Tower as their workplace.”

Aside from securing more predictable electricity costs, the agreement gives JEG Tower access to COREnergy’s customer portal. The platform provides daily and hourly power-use data, billing history, load factors and historical generation charges.

The data will help building managers track electricity use, make better operating decisions and find ways to improve energy efficiency.

COREnergy Vice President and Head of Operations Marko Sarmiento said the benefits of retail electricity go beyond helping property owners manage costs, especially as businesses increasingly consider operating efficiency and reliability when choosing office locations.

“Retail electricity is not just about managing costs,” Sarmiento said. “It’s about enabling commercial properties to operate more efficiently and creating better environments for the businesses inside them.”

The agreement also brings together two Cebu business groups with long ties to the region’s economic development.

JEG Development Corp. traces its roots to the Escaño family’s business interests, including the power sector, while Vivant has built businesses in energy and infrastructure. Their current operations include commercial real estate and retail electricity, respectively.

For Cebu’s office market, the deal reflects a broader shift in how property owners manage their power needs. Electricity is increasingly being viewed not just as a fixed utility expense but as a cost that can be managed through market participation, data and better control of power use. — (FREEMAN)