Trans-Asia Oil and Energy Development Corp is pursuing a regulatory approval from the Energy Regulatory Commission (ERC) for the sale of electricity to the Guimaras Electric Cooperative (Guimelco).
A joint application was sent to the ERC claiming that Guimelco, without Trans-Asia, would only rely on the Wholesale Electricity Spot Market (WESM), which is subject to market interventions and volatility that may affect the power supply stability of the area.
The contract for sale of electricity (CSE), which Trans-Asia is applying for, is said to be more beneficial for consumers rather than the electric supply contract (ESA) Guilmelco signed with the energy company in 2003.
The rates under the proposed contract are “reasonable and cheaper” than the old supply contract. Under the CSE, the rate will be at P5.1945 per kilowatt hour (kWh), a lower cost compared to the P7.4932 per kWh in the old contract.
“The cheaper price under the CSE is advantageous to the member-consumers as this results to cheaper electricity prices as compared to the old ESA,” the application stated.
The proposed CSE includes a 10-year deal with provisions for back-up power. The two companies said that the partnership will reduce the overall system cost by providing back-up power since Trans Asia’s plant is within the franchise area.
“More importantly, whenever power outages occur in the main grid, the whole island of Guimaras will have no other source of supply except the supply provided by Trans-Asia,” the two companies said.
The jurisdictional hearing, expository presentation, pre-trial conference and evidentiary hearing on the ESC application is set for August 11.