Biscuit manufacturer Monde M.Y. San Corporation has recently signed retail electricity supply contracts with Mabuhay Energy Corporation (MECO) for its production plant in Calamba City, Laguna.
The deals are particularly for the cracker giant’s two qualified contestable meters located in the said plant. The contract for the plant’s Meter 1 began last January 26, while the agreement for Meter 2 is set to begin on Friday. Both contracts will last until March 25, 2022.
Prior to the signing, Mabuhay Energy informed Monde M.Y. San that it was a qualified contestable customer and eventually offered to be its electricity provider. The biscuit firm then said it was satisfied with the offer, citing it as “one of the best cost-saving strategies” the 86-year old firm has done.
“We are delighted to have Monde as one of our partners, especially now that the retail electricity market has entered Phase 3,” MECO Chairman and CEO Sherwin Hing told Power Philippines.
Phase 3 refers to the recent lowering of the threshold for contestable customers to 500 kilowatts (kW) of average annual consumption under the government’s Retail Competition and Open Access (RCOA) policy.
Under RCOA, contestable customers like Monde M.Y. San can directly contract with a retail electricity supplier (RES) like MECO for the volume, rate, and package of services that it prefers. RCOA intends to lower electricity prices by introducing competition among various players.
“It is truly our goal to serve this new market of contestable customers with at least 500kW consumption. They are usually the ones that are reluctant to switch because they think that their consumption is not big enough for the big players,” said MECO Vice President and Head of Sales and Marketing Jacqueline Castillo.
“Mabuhay Energy has been helping us since last year and made us see how much savings we could have realized had we switched to them sooner. This is why when one of our meters qualified in the Phase 3 of the RCOA, we immediately signed another account with MECO even when the first meter was just awarded to them one month prior,” Monde M.Y. San said in a statement.
Prior to Monde M.Y. San, MECO signed contracts with Thailand-based Charoen Pokphand Foods and Megaworld’s Richmonde Hotels in Metro Manila. MECO is also building its own renewable energy portfolio.