ERC approves Ceneco-EDC power deal to lower rates

By Dolly Yasa

BACOLOD CITY – The Energy Regulatory Commission (ERC) has approved the Power Supply Agreement (PSA) between the Central Negros Electric Cooperative (CENECO) and Energy Development Corporation (EDC).

The ERC’s statement, posted on Ceneco’s Facebook page Friday evening, announced the Commission’s interim approval for the PSA with EDC, effective May 30, 2024.

According to a Notice of Resolution dated May 29, 2024, the ERC granted interim relief for EDC to supply power to CENECO at a rate of PHP 5.5657 per kilowatt hour (kWh).

The ERC’s approval is expected to lower CENECO’s generation rate amid high electricity prices in the province and reduce its dependence on the Wholesale Electricity Spot Market (WESM), from which the cooperative sources nearly 74% of its supply.

The approval also requires EDC to provide replacement power to CENECO.

The ERC noted that the final generation cost that EDC can charge remains subject to review by the Commission.

If the final approved rate is lower than the provisional rate, EDC must refund the difference to CENECO, which will then credit it to consumers’ electric bills.

Earlier, both Mayor Alfredo “Albee” Benitez and Acting Governor Jeffrey Ferrer urged the ERC to approve provisional authority for CENECO to implement the PSA.