Cheaper power rates seen in Pampanga’s capital with new energy suppliers
CITY OF SAN FERNANDO — The San Fernando Electric Light and Power Company (Sfelapco), which serves this capital city of Pampanga province, will acquire its power supply from AboitizPower (AP) and San Miguel’s Masinloc Power Partners Co. Ltd. (MPPCL), the power distributor announced recently.
In a May 19 statement, Sfelapco’s Vice President for Strategic Planning Rocky Bayas said AP won the bid for the distribution company’s baseload requirement, while MPPCL will provide supply for the company’s intermediate load.
Baseload refers to the minimum level of electricity demand required over a 24-hour period, while intermediate load pertains to the electricity demand from mid-morning until evening.
AP plans to supply power to Sfelapco through its renewable power plants and farms. The company owns the Tiwi and MakBan geothermal power plants in the provinces of Albay and Laguna, the Therma Luzon Power Plant in Pagbilao, Quezon, a 94-megawatt solar power farm in Pangasinan, and other green energy projects.
MPPCL generates energy through its coal-fired power plant in Masinloc, Zambales.
Bayas said both power generation companies have acknowledged and accepted their Notices of Awards.
‘Best options’
“Amid prevailing market prices and electricity supply concerns, these two companies presented the best options that we believe would best serve the interests of our customers moving forward,” Bayas said. However, the number of bidders was not disclosed.
Bayas also noted that power generated from renewable sources is exempt from the 12% value-added tax, which could help reduce the generation charge passed on to customers.
Upon finalizing its power supply agreements with AP and MPPCL, Sfelapco will submit the contracts to the Energy Regulatory Commission (ERC) for review and approval.
Sfelapco anticipates ERC approval of its new power supply agreements by the end of June this year.
Currently, through a six-month emergency power supply agreement secured from the Department of Energy, Sfelapco gets its electricity from the GN Power Ltd. Company, which owns a coal-fired power plant in Mariveles, Bataan.
The distribution company previously sourced electricity from Aboitiz Power Renewables, Inc. (APRI), an AP subsidiary, which operates geothermal power plants in Aklan and Laguna. However, its power supply agreement with APRI expired in December 2022.
Sudden hike
For more than a decade until 2022, Sfelapco collected a generation rate of approximately P4.43 per kilowatt-hour from consumers. Starting January this year, the generation rate surged to an average of P7.87 per kWh, excluding the 12% VAT, after the distribution company transitioned from APRI’s geothermal power plants to GNP’s Mariveles coal-fired power plant as its electricity source.
At that time, residents expressed concerns about the sudden increase in their monthly electric bills, criticizing Sfelapco on social media for what they described as the company’s “insensitivity” to ordinary people’s struggle with rising daily expenses.
“Even if we try to save energy as much as we can, if Sfelapco buys expensive electricity from power generators, we will still carry the burden of paying for high electricity charges,” a user commented on Sfelapco’s Facebook page.
Jose Lazatin, Sfelapco senior vice president and general manager, earlier assured consumers that the company would strive to provide the lowest possible rates. He added that the power distribution company currently collects the second-lowest generation rate in Central Luzon.
The Inquirer learned that Pampanga Electric Cooperative I (Pelco 1), serving the towns of Arayat, Magalang, Candaba, Mexico, Sta. Ana, and San Luis in Pampanga, levies the region’s lowest generation charge. From January to April this year, it collected an average of only P7.20 per kWh from its customers.
Pelco 1 sources its electricity from Bac-Man Geothermal power plants in Sorsogon City and Albay and from the Wholesale Electricity Spot Market.