03 May 2012

ERC okays Subic firm, SMEC supply deal

THE Energy Regulatory Commission (ERC) said it has provisionally approved the extension of the interim supply agreement between Subic EnerZone Corp. (SEZ) and San Miguel Energy Corp.(SMEC).

In ERC Case 2011-167 RC, the commission said the final generation cost that can be recovered will be determined when it makes the final decision.

ERC made it clear that when the rates provisionally approved are found to be higher than the final rates, the amount corresponding to the excess shall be refunded by SEZ to its customers by crediting the same in their electric bills over a period to be determined by the Commission.

In its letter of agreement furnished to the ERC in November last year, SMEC said it will provide SEZ with 208.06 gigawatt-hours of electricity from December 26, 2011 to December 25, 2012.

SMEC will supply SEZ’s monthly contracted energy at a proposed rate of P3.8916 per kilowatt-hour.

ERC said SMEC assured in its letter that all the terms and conditions in the existing interim supply agreement shall remain in force for the duration of the extended term.

ERC said SEZ previously sourced its power needs from the National Power Corp. under a Contract for Supply of Electric Energy.

Upon the privatization of Napocor’s assets, ERC said the CSEE was assigned to SMEC as it was the assigned as the Independent Power Producer Administrator for the 1,200-megawatt Sual coal-fired power plant. (Paul Anthony A. Isla, Business Mirror)