Danessa Rivera (The Philippine Star)
- May 18, 2019 - 12:00am
MANILA, Philippines — Razon-led MORE
Electric and Power Corp. has signed a power supply deal with KEPCO SPC Power
Corp. (KSPC) to supply Iloilo City with up to 10 megawatts (MW) of capacity.
MORE Power said the one-year interim
power supply agreement (IPSA) with KSPC is for a 5MW supply of electric
power to Iloilo City, with the option for another 5MW.
The power supply agreement will take
effect once MORE Power commences operations as the distribution utility in
Iloilo City.
“We are happy to be in partnership with KEPCO
SPC as we commit to bring more to the lives of the Ilonggos by delivering
cheaper power,” MORE Power president and COO Roel Castro said.
KSPC has agreed to supply reliable
power to Iloilo City at a much lower rate than the current supplier of the
City.
“KEPCO SPC is more than willing to
assist MORE Power in its journey in giving Iloilo City secured, reliable and
affordable power supply. [MORE] can always count on KSPC on these basic
criteria of service,” KSPC president and CEO Jong Ryoon Yoon said.
Republic Act 11212 grants MORE Power
a franchise to establish, operate, and maintain a distribution system in Iloilo
City and to ensure the continuous and uninterrupted supply of electricity in
the franchise area.
Under Section 5 of RA 11212, the
company is allowed to avail itself of the negotiated procurement of emergency
power supply under the competitive selection process policy of the Department
of Energy as long as the emergency power supply contract shall only be
for one year and the rates must not be higher than the latest Energy Regulatory
Commission-approved generation tariff for the same or similar technologies in
the area.
KEPCO SPC Power Corp. operates a
2×100-MW circulating fluidized bed combustor (CFBC) coal-fired power plant in
Naga City, Cebu.
Iloilo City is still being serviced
by Panay Electric Co. (PECO), whose franchise expired last Jan.19 and was
not extended by Congress.
However, it was allowed to continue
distributing power to Iloilo City as agreed by the DOE and ERC to ensure
continued power service in the franchise area.
This is based on the certificate of
public convenience and necessity (CPCN) issued by the then Energy Regulatory
Board (ERB), ERC’s predecessor office to PECO, on May 31, 1996.
The CPCN is the authorization issued
by the ERB/ERC to entities engaged in the transmission or distribution of
electricity for the operation of a transmission or distribution system.
ERC chairperson Agnes Devanadera
said the franchise granted to MORE Power allows a two-year transitory period
for PECO to operate until the Razon-led firm is ready financially and
physically with the transmission facilities.
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