MANILA, Philippines - San Miguel Energy Corp. (SMEC), the power generation arm of highly diversified San Miguel Corp. (SMC), has signed another supply contract, this time with Quezon Electric Cooperative.
SMEC will supply Quezon Electric about 10 megawatt (MW) of power starting December this year.
The contract is good for five years.
SMC is negotiating for a number of power supply contracts with various power distributors, particularly electric cooperatives.
SMEC is sourcing its power supply from independent power producers (IPP) contracts it acquired recently from state-run Power Sector Assets and Liabilities Management Corp. (PSALM).
Recently, SMEC also signed power supply contracts with Ilocos Norte Electric Cooperative, Inc. (INEC) and Sorsogon II Electric Cooperative, Inc. (SORECO).
“Upon evaluation of the offers of various interested suppliers, SMEC’s proposal was considered the most favorable to INEC and its consumer members,” INEC said.
SMEC will supply INEC’s power requirements up to the end of the year at P4.60 per kilowatt-hour, which is lower by around P0.01 per kilowatthour than state-owned National Power Corp.’s (Napocor) rates.
INEC holds the franchise to operate light and power service in the municipalities of Adams, Bacarra, Badoc, Bangui, Banna, Burgos, Carasi, Currimao, Dingras, Dumalneg, Marcos, Nueva Era, Pagudpud, Paoay, Pasuquin, Piddig, Pinili, San Nicolas, Sarrat, Solsona, Vintar, and the cities of Laoag and Batac all in the province of Ilocos Norte.