The Aklan Electric Cooperative Inc. (Akelco) is renegotiating the existing bilateral contracts with its Independent Power Producers (IPPs) to alleviate the swell of the utility’s power rates due to Boracay’s expected drop in power demand during the six-month rehabilitation starting April 28.
Akelco’s general manager Alex Regalado said that they would propose for the reduction of the minimum energy off-take (MEOT) until the resumption of tourism operations in Boracay, hourly reduction proportionate to all power suppliers, and monthly reconciliation to adjust the bilateral contract quantity of the electric cooperative (EC).
Though operations would continue unhindered within the electric cooperative’s coverage area during the Boracay closure, Akelco will have no choice but to implement an increase.
P1.5894 per kilowatt hour (kwh) in power rates will be implemented if the IPPs reject Akelco’s proposal, but the rate adjustment will only be at 0.0162-centavo per kwh if the IPPs agree.
The tourist destination’s six-month closure and cleanup will cost the power coop an average of P17.261 million in distribution, supply and metering (DSM) revenue losses based on the data provided by the utility.
An expected decrease in electricity consumption in Boracay by 84 percent and 38 percent to the overall load profile of the EC once the temporary shutdown of the island is carried out.
“If the generators accept our proposed pro-rated nomination per day, the rate impact is 0.0162 centavos per kwh. We’re optimistic that they will agree since a similar scenario happened during ‘Yolanda’,” Regalado said.