Firm inks deal for power in Iloilo

• Source:https://www.manilatimes.net/firm-inks-deal-for-power-in-iloilo/556058/
• Saturday, May 18, 2019

By JORDEENE B. LAGARE

MORE Electric and Power Corp. (MORE Power), the power firm of tycoon Enrique Razon Jr., has sealed a deal with Kepko SPC Power Corp. (KSPC) to supply electricity to Iloilo.

Under the one-year interim power supply agreement, KSPC will deliver 5 megawatts (MW) of electricity to MORE Power, with the option for another 5 MW.

MORE Power said KSPC, which operates a 2×100 MW Circulating Fluidized Bed Combustor (CFBC) coal-fired power plant in Naga City, Cebu, had agreed to provide “reliable power” to the city “at a much lower rate” than its current supplier.

“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,” MORE Power President and Chief Operating Officer Roel Castro said.

In February this year, President Rodrigo Duterte signed Republic Act 11212, granting the Razon-owned firm a franchise to establish and operate as a power distributor in Iloilo City.

The franchise calls for a two-year transition period, which entails negotiations on the use of facilities to prevent blackouts throughout the city.

Founded in 1923, Panay Electric Co. Inc.’s (PECO) franchise to supply electricity to end-users in Iloilo City expired on Jan. 18, 2019.

But PECO continued to operate under the Certificate of Public Convenience and Necessity issued by the Energy Regulatory Commission, which will expire on May 25.