Napocor Seeks Short-Term Supply Deals with Visayas Electricity Distributors
The government is seeking regulatory approval of short-term supply contracts between National Power Corp (Napocor) and electricity distributors in the Visayas.
In a petition before the Energy Regulatory Commission (ERC), state-run Power Sector Assets and Liabilities Management Corp (Psalm) said it signed supply deals with 19 distributors in the Visayas.
The supply deals will run from June 26 to December 25 this year and would be based on Napocor’s time-of-use (TOU) rates. The TOU scheme charges different rates depending on what time of day power is used, such that electricity consumed during peak hours costs more.
Psalm signed the supply contracts amid the delays in the sale of Napocor’s contracted output with the Unified Leyte Geothermal Power Plant, which was targeted for turnover to the private sector last March.
The utilities include Antique Electric Cooperative Inc, Biliran Electric Cooperative Inc, Cebu I Electric Cooperative Inc, Cebu II Electric Cooperative Inc, Central Negros Electric Cooperative Inc, Don Orestes Romualdez Electric Cooperative Inc, Eastern Samar Electric Cooperative Inc, Iloilo II Electric Cooperative Inc, Iloilo III Electric Cooperative Inc, Leyte II Electric Cooperative Inc, Leyte III Electric Cooperative Inc, Leyte V Electric Cooperative Inc, Negros Occidental Electric Cooperative Inc, Negros Oriental I Electric Cooperative Inc, Northern Samar Electric Cooperative Inc, Samar I Electric Cooperative Inc, Samar II Electric Cooperative Inc, Visayan Electric Co Inc and VMC-Rural Electric Cooperative Inc.
Under the agreements, the utilities shall nominate month-ahead their hourly and daily energy requirements to Psalm, which signed an operations and management agreement with Napocor in 2009.
Created by the Electric Power Industry Reform Act of 2001, Psalm is tasked to manage Napocor’s assets and settle its debts.
