MORE Electric and Power Corp. (MORE Power) has signed an interim power supply agreement for 5 megawatts (MW) with KEPCO SPC Power Corp. (KSPC), helping ensure stable electricity in Iloilo City for the one-year term of the contract.
“We are happy to be in partnership with KEPCO SPC as we commit to bring more to the lives of the Ilonggos by delivering cheaper power,” said Roel Z. Castro, president and chief operating officer of MORE Power, in a statement on Friday.
The contract has an option for another 5 MW. It was signed on May 15 at the KSPC plant office in Naga City, Cebu.
MORE Power said KSPC had agreed to supply reliable power to Iloilo City at a much lower rate than the current supplier of the city.
It quoted KSPC President and Chief Executive Officer Jong Ryoon Yoon as saying: “KEPCO SPC is more than willing to assist MORE Power in its journey in giving Iloilo City secure, reliable and affordable power supply. [MORE] can always count on KSPC on these basic criteria of service.”
KSPC operates a circulating fluidized bed combustor coal-fired power plant with two units, each with a capacity of 100 MW. The plant is in Naga City, Cebu.
Under MORE Power’s franchise, or Republic Act 11212, the power distribution utility is allowed to resort to negotiated procurement of emergency power supply under Department of Energy (DoE) Circular DC 2018-02-003.
The DoE circular adopts and prescribes the policy for the competitive selection process in procurement by distribution utilities of PSAs for the captive market.
The emergency power supply contract must not be higher than the latest Energy Regulatory Commission-approved generation tariff for the same or similar technologies in the area. — Victor V. Saulon