Panay Energy Development Corp. (PEDC), a subsidiary of Metrobank Group’s Global Business Power Corp. (GBPC), is offering a generation rate of P5.05 per kilowatt hour (kWh) to electric cooperatives in the Visayas through its 150-megawatt power expansion project in Iloilo City.
The company said it has offered members of the Panay-Guimaras Power Supply Consortium (PPSC) a generation rate of P5.05 per kWh for a contract period of 20 years.
PPSC is a consortium composed of Iloilo Electric Cooperative (ILECO) I, II, and III; Antique Electric Cooperative; Aklan Electric Cooperative; Capiz Electric Cooperative; and Guimaras Electric Cooperative.
The consortium plays a vital role in ensuring ample and affordable power supply in the Panay-Guimaras area. Through PPSC, cooperatives are able to negotiate better prices and supply of electricity in the Panay-Guimaras area with independent power producers.
According to Engr. Wilfred Billena, president of PPSC and general manager of ILECO 1, no other supplier has matched the P5.05 per kWh offer of PEDC under the Swiss Challenge procurement process PPSC undertook to open to bidders their future power supply requirement.
The Swiss Challenge system is a new bidding procedure involving an unsolicited bid and allows other parties to match or exceed the offer made by the original proponent.
“Given the power generators’ average rate of P5.30 per kWh in the Visayas, a household with a 200 kWh consumption can save P50 per month with PEDC’s rate of P5.05 per kWh,” said GBP executive vice president Jaime Azurin.
“For an electric cooperative, this translates to P180,000 per MW per month savings. For PPSC’s 31 MW requirement, total savings would be P5.58 million per month,” Azurin said.
“Global Power is committed to provide adequate, reliable and cost-efficient power to the Visayas. With the construction of the new 150 MW plant, Panay Energy fulfills its commitment to address the growing electricity demand of its existing clients,” he said.
More significantly, he said the Visayas region is assured of sufficient electricity to sustain the accelerated economic growth in the region “that is now evident in the emergence of new sectors like BPO, tourism, and other commercial developments.”
“At the same time, with the new power plant being on Panay Island itself, reliability of electricity supply is enhanced tremendously, reducing dependence on submarine cables which are weather sensitive by their very nature,” he said.
“Finally, the cost to consumers of the new capacity is very efficient and competitive. With a single unit of 150 MW, we may also expect fuel consumption efficiencies that are passed on directly to consumers. The new plant will be operational by July 2016,” he added.