By Danessa Rivera (The Philippine Star) | Updated March 7, 2016 - 12:00am
http://www.philstar.com/business/2016/03/07/1560151/gerphil-buseco-power-supply-deal-approval
MANILA, Philippines - Regulatory clearance is being sought for a five-year power supply deal between Bukidnon Second Electric Cooperative Inc. (BUSECO) and Gerphil Renewable Energy Inc.
Under the deal signed in January, Gerphil Renewable will supply 220-kilowatts (kW) of electricity generated by the 2x110-kW Panoon Falls Mini Hydro Plant for a period of five years.
The two parties want the Energy Regulatory Commission (ERC) to grant them provisional approval of their agreement.
“This is a joint application submitted to this Honorable Commission for its due consideration and approval of the power sales agreement…,” the parties said in their petition before ERC.
The contracted capacity will supplement existing power supply amid increasing demand of the cooperative.
It also aims to offset the upcoming load reduction by the Power Sector Assets and Liabilities Management (PSALM) due to impending privatization.
The existing supply contract of electric energy with PSALM is set to expire on Dec. 25.
The deal will also result to additional costs to their customers. An additional P0.0087 per kilowatt-hour will be charged.
Thus, the electric cooperative entered into an agreement with GREI last January 2015, which will have a rate increase of P0.0087 per kilowatt-hour to its customers.
The ERC has set a pre-trial conference and evidentiary hearing on April 14.
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