MORE Electric and Power Corp. (MORE Power) has inked an interim power supply agreement with KEPCO SPC Power Corp. (KSPC) for a 5MW supply of electric power to Iloilo City, with the option for another 5MW.
The interim power supply agreement will be for one year.
“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 Castro, president and chief operating officer of MORE Power.
The contract signing was held at the KSPC Plant Office in Naga City, Cebu on May 15.
KSPC has agreed to supply reliable power to Iloilo City at a much lower rate than the current supplier of the City.
KSPC president and chief executive officer Jong Ryoon Yoon expressed support to MORE Power saying, “KEPCO SPC is more than willing to assist MORE Power in its journey in giving Iloilo City secured, reliable and affordable power supply. [MORE] can always count on KSPC on these basic criteria of service.”
Under Section 5 of Republic Act 11212 (An Act Granting MORE Electric and Power Corp. a Franchise to Establish, Operate, and Maintain, for Commercial Purposes and in the Public Interest, a Distribution System for the Conveyance of Electric Power to the End-Users in the City of Iloilo, Province of Iloilo, and Ensuring the Continuous and Uninterrupted Supply of Electricity in the Franchise Area), MORE Power is allowed to avail itself of the negotiated procurement of emergency power supply under the Department of Energy (DOE) Circular DC 2018-02-003 entitled “Adopting and Prescribing the Policy for the Competitive Selection process in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive Market,” provided that such emergency power supply contract shall only be for a period of one year and the rates must not be higher than the latest Energy Regulatory Commission-approved generation tariff for the same or similar technologies in the area.
The power supply agreement will take effect once MORE Power commences operations as the distribution utility in Iloilo City.
KEPCO SPC Power Corp. operates a 2×100 MW Circulating Fluidized Bed Combustor (CFBC) coal-fired power plant in Naga City, Cebu./PN