Razon-led power utility secures EDC supply

Published June 29, 2022, 2:47 PM

by Myrna M. Velasco

Razon-led MORE Electric and Power Corporation will tap 20 megawatts of its electricity supply from Energy Development Corporation (EDC), a subsidiary of First Gen Corporation of the Lopez group.

MORE Power will be utilizing the contracted power supply in servicing its roughly 87,000 customers in Iloilo City, one of the thriving metropolis in the country being an investment haven to array of growing businesses.

In a statement to the media, the Lopez firm indicated that “MORE Power’s move to get power from First Gen-EDC is a part of the distribution utility’s customer welfare-driven initiatives that aim to provide stability and reliability in terms of supply and fixed power rates to its power consumers.”

EDC-First Gen explained that the supply contract had been an outcome of a competitive selection process (CSP) that MORE Power had undertaken to complete its supply portfolio buildup.

The PSA is good for five years with the electricity supply coming from the Unified Leyte geothermal power plant of EDC, which is in the genre of traditional renewable energy (RE) technologies.

The rules of the Department of Energy (DOE) prescribe that all DUs shall carry out CSP or competitive bidding for the power supply agreements (PSAs) that they will enter into with power suppliers – that way, they are assured that they will corner the most competitive rates when passed on to the consumers.

MORE Power, a subsidiary of Prime Strategic Holdings Inc. of billionaire Enrique Razon, is servicing around 87,000 customers. It took over the operations of a power utility in Iloilo in 2020.

Roel Castro, president and CEO of MORE Power, opined that “green power is not only reliable but also affordable. MORE Power gives priority to affordability of electricity, then having renewable energy in our portfolio.”

He similarly stated their company’s confidence that “this partnership with First Gen and EDC will give us both our priorities that will benefit our consumers in the long term. Especially now that global fuel prices are, and will continue to be volatile, having renewable energy in our portfolio will save our consumers from high electricity costs.”

According to Marvin S. Bailon, vice president and head of Business Development of EDC, the contract “will not only benefit both parties but will also help our country decarbonize and meet target to reduce its carbon emissions,” which is in line with the Paris Agreement on Climate Change.

He specified that “apart from reducing its carbon footprint, MORE Power will also enjoy more affordable electricity rates; because of the value-added tax zero rating on geothermal power generation and because geothermal fixed rates that are not indexed to any fuel commodities and foreign exchange.”