by Myrna Velasco, 13 April 2015
from Manila Bulletin
Following the expiration of the power utility’s deal with previous supplier, San Miguel Energy Corporation has agreed to become the electricity provider for the energy needs of Camarines Sur IV Electric Cooperative.
The parties’ five-year power supply agreement (PSA) has already been submitted to the Energy Regulatory Commission (ERC) for evaluation and eventual approval.
The SMEC’s power supply deal with the Camarines Sur electric cooperative is due for public hearing this April 29.
The duration of the contract will be from September 2013 to December 2018 with the corresponding capacity and energy fees.
It has been stipulated in the supply pact that it sets “a cost adjustment mechanism or adjustment formula, that shall determine the movements on a monthly basis of SMEC’s generation costs.”
Primarily, this shall reflect “the changes in fuel prices, the Philippine peso to US dollar exchange rate fluctuations and inflation based on consumer price indices of the United States and the Philippines.”