CEBU, Philippines - The Visayan Electric Co. (VECO) has entered into an agreement with Southwest Luzon Power Generation Corp. (SLPGC) for the latter to supply 50 megawatts of electricity to the former, the Energy Regulatory Commission (ERC) said in an order.
ERC said VECO and SLPGC have sought its approval for their power supply agreement. On July 20, 2015, ERC said the two companies had filed the application for approval of their agreement.
ERC said in the regulatory order dated September 1 that "SLPGC shall supply and deliver 50 MW to VECO within the cooperation period" of three years.
According to ERC, VECO had previously sourced 120 MW or about 30 percent of its electricity requirements from the National Power Corp. (NPC) and Power Sector Assets and Liabilities Management Corp. (PSALM) under a contract for supply of electric energy. Such contract, however, had expired last December 2014 and was not extended, leaving VECO a supply deficit of 120 MW after it expired, the power regulator said.
ERC has scheduled a jurisdictional hearing on October 29 in Cebu City for the joint petition of the two firms.
VECO, the country's second largest distribution utility, distributes electricity in the towns of Consolacion, Minglanilla, San Fernando and Lilo-an, and cities of Naga, Talisay, Cebu and Mandaue in the Province of Cebu. VECO is jointly owned and managed by listed firms Aboitiz Power Corp. and Vivant Corp. which are both engaged in the power industry.
SLPGC, on the other hand, is a wholly owned subsidiary of Semirara Mining and Power Corp.