ERC greenlights VECO, Southwest Luzon supply deal

By Danessa O. Rivera (The Philippine Star) | Updated January 12, 2016 - 12:00am

http://www.philstar.com/business/2016/01/12/1541567/erc-greenlights-veco-southwest-luzon-supply-deal

MANILA, Philippines - The Energy Regulatory Commission (ERC)  has cleared the 50-megawatt (MW) power supply deal between Southwest Luzon Power Generation Corp. (SLGPC) and Visayan Electric Co. (VECO).

This transaction effectively replaces the expired supply deal with government-owned facilities.

The power regulator gave the provisional authority between SLGPC, a unit of Semirara Mining and Power Corp., and VECO, the second largest electric utility in the country owned by Aboitiz Power Corp.

Under the power supply agreement, SLGPC will provide 50 MW of supply to VECO for three years.

The supply will be sourced from the Semirara unit’s 2x150-MW coal-fired power plant in Calaca, Batangas.

VECO previously sourced 120 MW capacity from the Unified Leyte Geothermal Power Plant (ULGPP), which is under National Power Corp. (Napocor) and Power Sector Assets and Liabilities Management Corp. (PSALM).

However, the contract for supply of electric energy (CSEE) with the government expired last December and was not extended.

“The said 50-MW capacity is intended to replace VECO’s mid-merit supply from the NPC/PSALM,” SLGPC and VECO said in its application.

VECO, owned and managed by Aboitiz Power Corp. and Vivant Corp., distributes power in the towns of San Fernando, Minglanilla, Consolacion and Lilo-an, and the cities of Naga, Talisay, Cebu and Mandaue, all in the province of Cebu.