MANILA, Philippines — Razon-led MORE Electric and Power Corp. has signed a power supply deal with KEPCO SPC Power Corp. (KSPC) to supply Iloilo City with up to 10 megawatts (MW) of capacity.
MORE Power said the one-year interim power supply agreement (IPSA) with KSPC is for a 5MW supply of electric power to Iloilo City, with the option for another 5MW.
The power supply agreement will take effect once MORE Power commences operations as the distribution utility in Iloilo City.
“We are happy to be in partnership with KEPCO SPC as we commit to bring more to the lives of the Ilonggos by delivering cheaper power,” MORE Power president and COO Roel Castro said.
KSPC has agreed to supply reliable power to Iloilo City at a much lower rate than the current supplier of the City.
“KEPCO SPC is more than willing to assist MORE Power in its journey in giving Iloilo City secured, reliable and affordable power supply. [MORE] can always count on KSPC on these basic criteria of service,” KSPC president and CEO Jong Ryoon Yoon said.
Republic Act 11212 grants MORE Power a franchise to establish, operate, and maintain a distribution system in Iloilo City and to ensure the continuous and uninterrupted supply of electricity in the franchise area.
Under Section 5 of RA 11212, the company is allowed to avail itself of the negotiated procurement of emergency power supply under the competitive selection process policy of the Department of Energy as long as the emergency power supply contract shall only be for one year and the rates must not be higher than the latest Energy Regulatory Commission-approved generation tariff for the same or similar technologies in the area.
KEPCO SPC Power Corp. operates a 2×100-MW circulating fluidized bed combustor (CFBC) coal-fired power plant in Naga City, Cebu.
Iloilo City is still being serviced by Panay Electric Co. (PECO), whose franchise expired last Jan.19 and was not extended by Congress.
However, it was allowed to continue distributing power to Iloilo City as agreed by the DOE and ERC to ensure continued power service in the franchise area.
This is based on the certificate of public convenience and necessity (CPCN) issued by the then Energy Regulatory Board (ERB), ERC’s predecessor office to PECO, on May 31, 1996.
The CPCN is the authorization issued by the ERB/ERC to entities engaged in the transmission or distribution of electricity for the operation of a transmission or distribution system.
ERC chairperson Agnes Devanadera said the franchise granted to MORE Power allows a two-year transitory period for PECO to operate until the Razon-led firm is ready financially and physically with the transmission facilities.