By Alena Mae S. Flores Posted on Dec. 01, 2012 at 12:01am
SN Aboitiz Power-Magat Inc., operator of the 360-megawatt Magat hydroelectric power plant, asked the Energy Regulatory Commission to approve power supply agreements with three distributors in Luzon.
The distributors are Ifugao Electric Cooperative Inc., Isabela II Electric Cooperative Inc. and Quirino Electric Cooperative Inc.
SNAP Magat said it signed supply contracts with Ifugao Electric, Isabela II Electric and Quirino Electric on Oct. 9. The agreements must be approved by the regulator before the first billing period ending Jan. 25, 2013.
SNAP Magat Aboitiz said under the agreements, the distribution utilities would continue to enjoy reasonable rates and have a steady and reliable supply of energy for a longer term. They will also have flexibility to adjust contracted energy once the open access and retail competition are implemented.
SNAP Magat, which operates the 360-MW hydro plant on the borders of Isabela and Ifugao, offered a rate of P4.70 per kilowatt-hour to the electric cooperatives.
“If provisional approval is not granted, Ifugao Electric, Isabela II Electric and Quirino Electric will be constrained to source its power supply or additional requirements from WESM [wholesale electricity spot market] and customers will be exposed to a bigger risk of the volatility of the rates in the WESM, to the detriment and prejudice of their customers,” the parties said.
SNAP-Magat, a joint venture of SN Power of Norway and Aboitiz Power Corp., earlier said the supply agreements were a continuation of three-year contracts signed in 2009, and would take effect from Dec. 26, 2012 to Dec. 25, 2017. source
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