Business World Online
Posted on March 16, 2012 05:54:25 PM
THE ENERGY Regulatory Commission (ERC) has approved a power supply deal between San Miguel Energy Corp. and Sorsogon Electric Cooperative, Inc. II (Soreco II).
Under the agreement, San Miguel Energy will provide Soreco II at least five megawatts (MW) of power for two years for a basic generation rate of P5.1885 per kilowatt-hour.
San Miguel Energy will source the power from its 1,200-MW Sual coal-fired power plant.
"There is a necessity for the immediate and provisional approval of the instant application in order that there will be no undue disruption in the power supply and the member-consumers of Soreco II shall, the soonest possible time, benefit from the lower generation cost as can be gleaned from San Miguel Energy's proposal," the ERC said in its order.
The ERC also allowed Soreco II to source more power from San Miguel Energy should requirements increase as long as it the National Grid Corporation of the Philippines says transmission lines will be able to handle the additional load.
San Miguel Corp. won the independent power producer administrator contract for the Sual power plant in 2009 with a bid of $1.072 billion. San Miguel is considered the biggest trader of electricity in the country. -- ENJD
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