The Energy Regulatory Commission (ERC) issued an interim approval for the power supply agreement (PSA) between Central Negros Electric Cooperative (Ceneco) and the Energy Development Corporation (EDC) to arrest the rising electricity rates in central Negros.

Ceneco acting general manager Arnel Lapore, following the ERC’s approval of the PSA, expects that power rates will go down by P1.50 to 1.80 per kilowatt-hour (kWh) this month, and by P4 per kWh in July.

In a notice of resolution dated May 29, the ERC issued interim relief for EDC to supply power to Ceneco at a rate of P5.5657 per kWh.

The PSA is expected to reduce Ceneco’s generation rates amid high electricity prices, as the cooperative mitigates its exposure to the Wholesale Electricity Spot Market (WESM).

ERC said Ceneco buys almost 74 percent of its supply in the WESM.

The agreement also requires EDC to provide replacement power to Ceneco, even during planned or unplanned outages, equivalent to the provisionally approved rate.

The ERC said the final generation cost that EDC can charge is still subject to review by the commission.

EDC is duty-bound to refund Ceneco if the approved final rate is lower than the provisional rate granted.

Ceneco is also mandated to credit the same on the electricity bills of the consumers, the ERC said.

The Negros-based cooperative has a 20-megawatt 10-year supply contract with EDC at P5.56 per kWh value added tax.

Earlier, Bacolod City Mayor Alfredo Abelardo Benitez urged ERC to act on the joint petition of Ceneco and EDC which could lower the cost of power in the city.

Both Ceneco and EDC applied for their PSA last March 24, with a request for provisional authority./WDJ