The Negros Oriental II Electric Cooperative (NORECO II) has signed an agreement with a private energy supplier for additional baseload power to fulfill its requirements.
Lawyer Fe Marie Tagle, NORECO II general manager, said in an interview on Friday that the Filinvest Development Corp. - Misamis Power Corp. would supply a baseload of 18 megawatts (MW) to NORECO II.
The delivery of the 18 MW will commence on Oct. 26, she said.
“We entered into an emergency power supply agreement or EPSA with FDC-Misamis for a baseload equivalent to what is now being offered by NORECO II in the Competitive Selection Process (CSP),” Tagle said.
Under the law, with the current “emergency situation” NORECO II is facing, it can enter into a contract for one year with a private supplier for its power requirements until the CSP is completed and a new supplier is identified, she said.
The CSP is like a bidding process where power suppliers can make an offer to the cooperative to provide their electricity requirements.
Tagle said the EPSA is to shield the cooperative from the volatility of the spot market where power rates are unpredictable and could trigger a spike in consumers’ monthly electric bills.
“This is to avoid full exposure to the market where prices of power are rising,” Tagle said.
Currently, the average baseload requirement of NORECO II is 43 MW, with 25 MW generated from renewable energy, specifically geothermal power, she said.
During peak months, such as during summer, NORECO II’s requirement increases to as much as 80 MW, she added.
NORECO II has higher power rates compared to some electric cooperatives in Negros Island and Cebu, which Tagle said is driven by the spot market. (PNA)
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