The Energy Regulatory Commission (ERC) has granted a much-needed reprieve for Bacolod residents struggling with rising electricity bills.
In a move announced today, the ERC issued an interim approval for a Power Supply Agreement (PSA) between the Central Negros Electric Cooperative (CENECO) and the Energy Development Corporation (EDC).
This agreement allows EDC to supply CENECO with power at a fixed rate of PhP5.5657 per kilowatt hour (kWh). This is 200% lower than the volatile prices of the Wholesale Electricity Spot Market (WESM), where CENECO currently sources nearly 74% of its power.
The shift is expected to decrease CENECO’s generation costs and translate to lower electricity rates for Bacolod consumers.
The ERC’s decision comes as a response to pleas from Bacolod Mayor Alfredo Abelardo Benitez and Negros Occidental Acting Governor Jeffery Ferrer, who urged the commission to take action on CENECO’s proposal.
Under the terms of the PSA, EDC will also be responsible for providing backup power to CENECO in case of disruptions. It’s important to remember that this is a preliminary approval.
The final electricity rate may be subject to further review by the ERC. If the final approved rate is lower than the initial PhP5.5657 per kWh, EDC will be required to refund the difference to CENECO, who will then credit the amount back to consumers’ electricity bills, ERC said in a press statement.
