ILOILO City – With a new power distributor here, the business sector looks forward to lower electricity rates which in turn could further spur their growth.
Halley Alcarde, assistant vice president of Gaisano Capital, welcomed the announcement of More Electric and Power Corp. (MORE Power) that it has been negotiating with several power producers to secure affordable electricity.
“Pwede palang bumaba ang power rate natin by simply sourcing it out from various suppliers. How come hindi natin ginawa ‘yan for the past how many years,” said Alcarde.
The previous power distributor here was Panay Electric Co. (PECO).
According to Roel Castro, president of MORE Power, “Our negotiations with several power suppliers are on the final stages.”
These power suppliers are AP Renewables Inc’, KEPCO SPC Power Corp. and Palm Concepcion Power Corp.
“They are offering one-third less of the existing power generation which is P7.84 per kilowatt hour (kWh) as of January 2019. That is P6.63 / kWh versus P7.84 / kWh,” said Castro during a forum with the business sector on Thursday.
Castro said MORE Power will also draw power from Panay Energy Development Corp. and the Wholesale Electricity Spot Market (WESM).
“Tayong nasa business community ang main objective ay papaano kaagad tayo makakabawas ng cost,” said Alcarde.
Velma Jane Lao, Local Economic and Investment Officer, said affordable electricity would attract more investments to Iloilo City.
“We need better (power) service,” Lao stressed.
Castro assured businessmen: “You are now assured of continuous power supply as you expand your businesses.”
Businessmen showed up on Thursday at different hours in separate fora – SM City, Gaisano Capital, Hotel del Rio, and Ayala Technohub – to hear Castro as regards his company’s entry as the new power distributor in Iloilo City.
MORE Power was granted a 25-year franchise replacing PECO. The franchise bill, Republic Act No. 11212, was signed by President Rodrigo Duterte on Feb. 14, 2019.
The law would take effect on March 9, the 15th day since its publication in a newspaper of general circulation.
Castro said that with a capital expenditure amounting to nearly P1.3 billion, MORE Power expects to complete the rehabilitation of power facilities within a two-year transition period that would initially call for teamwork with PECO, whose certificate of public convenience and necessity (CPCN) would expire in May 2019.
MORE Power got its own CPCN from the Energy Regulatory Commission (ERC) on Dec. 27, 2018.
Castro assured his audience that transition from PECO to MORE Power would be smooth and consumer-beneficial, “24/7”. High-tech gadgets and meters would be installed to keep charges low and minimize system’s loss./PN
