Kalinga-Apayao power coop lowers rate with new supplier

By Peter A. Balocnit

TABUK CITY, Kalinga- - Power rate in the franchise area of the Kalinga-Apayao Electric Coop. is expected to  decrease  by  0.5794 centavos per kilowatt hour from P5.5342/kwh to P4.9548/kwh under a new  supplier .

This was the result of a public hearing held at Kaelco office Nov.15 presided by hearing officer and lawyer Robiel Masigan of the Energy Regulatory Commission attended by lawyers Jennifer Deleon Sanchez and Vladi Miguel Santos Lazaro of the  Aboitiz Power Renewables, Inc. (APRI), and Atty. Ditas Lerios Amboy, legal counsel for Kaelco.

According to Leonardo Egcatan, Kaelco Energy trading/corporate planning chief, the lower rate will take effect after the Energy Regulatory Commission approves the provisional authority.

           

He said Kaelco formerly got its power supply from coal-based San Miguel Energy Corporation in Sual, Pangasinan with a two-year contract that expired in July this year.

           

Egcatan said under the power supply  agreement, APRIC which is operating and  selling geothermal power supply from  the Mak-Ban and Tiwi geothermal plants,  will be  Kaelco’s power supplier for a 5-year contract period from July 26, 212 to July 25, 2017. “But Kaelco still buys about 15% of its power supply from the wholesale electricity spot market,” he said.

           

On July 2, 2012, the bids and awards committee of Kaelco through BAC resolution No. 06 s. 2012 recommended APRI from among three bidders as the most advantageous bilateral power supplier of the cooperative.

On July 6, the board of directors through BOD Resolution No. 030 s. 2012, adapting BAC Res. No. 06 s. 2012 and approving the coop’s intent to enter into a contract with APRI for the supply of energy to Kaelco for five years and authorized management to file appropriate case to ERC.

“Kaelco may avail of early payment discounts and operations efficiency discount which can also redound to the benefit of consumers,” Egcatan said.

However, Kaelco will also be penalized  forfailure to pay the electricity fee or any other amount payable on the due date.

Kaelco management called on  its 29,163 billed customers in 138 barangays of its franchise area and 12 outside to pay bills on time in order to avail of discounts.    It also urged coop member consumers  to help reduce the 14% system loss by not engaging in illegal connections.