The Palawan Electric Cooperative (Paleco) and Delta P Inc. (DPI) have started implementing last October 4 their 15-year power supply agreement (PSA).
Under their PSA, Paleco is assured of 40 megawatts (MW) of power supply from DPI, a subsidiary of Vivant Energy Corp. (Vivant Energy).
This milestone underscores Paleco’s commitment to address the long-standing challenges in mainland Palawan by ensuring a reliable power supply and reducing electricity costs for its member-consumer-owners (MCO) in partnership with Vivant Energy, according to a statement from both firms released Monday.
Prior to the start of the PSA, both were implementing a transition power supply agreement (TSPA). The PSA now paves the way for a more reliable power in the province and a lower power generation charge for consumers as DPI will only recover the Subsidized Approved Generation Rate (SAGR) from Paleco.
Also, Paleco’s MCOs will receive refunds from its implementation, along with significantly lower electricity bills through the Universal Charge for Missionary Electrification (UCME), further easing the burden of the consumers who previously had to pay unsubsidized generation rates.
‘Through this transition, Paleco assures Palaweños that we are keeping our promise of delivering reliable service, stable power, and lower rates, as we move toward Palawan’s development.’ Paleco General Manager Rez Contrivida said.
‘This milestone is a proof of our commitment to provide secure and reliable power to Palawan-continuing our mission of bringing excellence to industries that improve everyday living,’ said Eric Omamalin, DPI president.