Provincial seal of Nueva Ecija, Philippines. (Photo credit: Wikipedia)The Energy Regulatory Commission (ERC) has approved five new energy supply contracts of a subsidiary of diversified conglomerate San Miguel Corp.
San Miguel Energy Corp. (SMEC) bagged deals for its Sual coal-fired thermal power plant in Pangasinan to supply electricity to electric cooperatives in Nueva Vizcaya, Ilocos Norte, Laguna, Bataan and Nueva Ecija.
“In the interest of the public, there is a necessity for the immediate and provisional approval of the instant applications in order that there will be no undue disruption in the power supply,” the ERC said.
It will also ensure that member-consumers of the electric cooperatives benefit from “lower generation cost as can be gleamed from SMEC’s proposal,” it added.
The supply contracts range from one year and five months to two years and four months.
Specifically, Nueva Ecija II-Area 1 Electric Cooperative Inc. will buy 10-12 million kilowatt-hours (kWh) per month from SMEC at P1.66-6.42 per kWh.
Nueva Vizcaya Electric Cooperative Inc. will source roughly 16,000 to 21,000 kWh from SMEC at P1.66-6.32 per kWh.
SMEC will supply 15-17 million kWh worth P1.66-6.32 per kWh to Ilocos Norte Electric Cooperative Inc. SMEC said the rates will be lower by 20 centavos compared with the previous supply contract with state-owned National Power Corp.
Peninsula Electric Cooperative Inc. will buy 21-28 million kWh of electricity from SMEC at P1.76-6.70 per kWh.
Lastly, First Laguna Electric Cooperative Inc. will source five to seven million kWh valued at P1.82-6.70 per kWh.
The ERC said consumers are also expected to benefit as the ERC required the distribution utilities to pass on 50 percent of the efficiency discount availed from SMEC.
