CENECO inks 10-yr contract w/ EDC firm

BACOLOD CITY Philippine s— A 10-year power supply agreement was signed between Central Negros Electric Cooperative (CENECO) and Green Core Geothermal Inc., the power arm of geothermal leader Energy Development Corporation (EDC), last November 28 at Oakwood Hotel in Manila.

Based on the contract, Green Core will supply 10 megawatts (MW) to CENECO from December 26, 2011 to June 25, 2014, and 20 MW from June 26, 2014 up to December 25, 2021.

"We've been hoping to forge this agreement with Green Core. This is indeed good news for our franchise areas because we will be delivering not only clean energy but a low-cost one since geothermal is VAT zero-rated," said CENECO president Arnel Lapore.

EDC president and chief operating officer Richard Tantoco, for his part, said EDC is happy to partner with CENECO in supporting the growth needs of Bacolod and the province and power requirements of its franchise areas.

"CENECO's residential and industrial customers will benefit from this partnership. On top of being VAT zero-rated, the electricity price of geothermal being indigenous and renewable is not escalated using adjustment formula that considers movements in global fuel prices and foreign exchange. Our rate provides for a once a year adjustment only using the Philippine Consumer Price Index," he said.

Geothermal's many advantages have been the reason for electric cooperatives to sign long-term power supply contracts with Green Core, Tantoco said.

In 2010, Green Core signed power supply contracts with 12 electric cooperatives and two industrial customers which supply the power requirements of 157 cities and towns in Visayas, specifically in the provinces of Leyte, Cebu, Negros, and Panay, Tantoco added. (FREEMAN)