ERC clears supply deal between South Cotabato electric coop

By: Euan Paulo C. Añonuevo,

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MANILA – Regulators have approved the power supply agreement entered into by South Cotabato’s electric cooperative and the local unit of Miami-based SoEnergy International Inc.

In a decision, the Energy Regulatory Commission (ERC) affirmed the supply deal between South Cotabato II Electric Cooperative Inc (Socoteco II) and SoEnergy International Philippines Inc.

Under the agreement, SoEnergy will deliver at least a 15-megawatt (15 MW) capacity from its 19-MW diesel-fired generator set to Socoteco II for two years.

SoEnergy put up the temporary diesel plant in Socoteco II’s franchise area after posting the lowest bid of P14 per kilowatt-hour for the supply of electricity to the latter in 2013.

Socoteco II sought the additional power supply because of insufficient power generation in Mindanao due to limited production from state-owned hydroelectric plants whose output have been affected by the extreme heat.

Without the additional power supply, Socoteco II projected its franchise area, which includes General Santos City, will “continuously experience severe deficiency or shortage in the power supply in 2014 and 2015.”

Socoteco II’s power supply deficiency is as high as 16 MW, which translates to power outages lasting as long as seven hours a day.

SoEnergy International (formerly Energy International) is an energy services provider with interests across the globe.