BACOLOD CITY – The Energy Regulatory Commission (ERC) has approved the power supply agreement (PSA) between the Central Negros Electric Cooperative (Ceneco) and the Energy Development Corp. (EDC) in a bid to stop increasing electricity rates affecting the province of Negros Occidental.

In a statement dated May 31 posted on Facebook, the ERC said that they have informed Ceneco on Thursday, May 30, of their interim approval of the implementation of its PSA with EDC.

This is in response to the earlier call of Mayor Alfredo “Albee” Benitez to the ERC to act on the joint petition filed by Ceneco and EDC on March 15 under ERC Case No. 2024-038 RC entitled “In the Matter of the Application for the Approval of the Power Supply Agreement between Ceneco and EDC, with Motion for Confidential Treatment of Information and Prayer for Provisional Authority or Interim Relief,” following the strong clamor of  consumers here regarding the high power rates of Ceneco in recent months.

The ERC, in a notice of resolution dated May 29, said that it gave an interim relief for EDC to supply power to Ceneco at the rate of P5.5657 per kilowatt hour (kWh).

The ERC said that its action on the PSA application is expected to reduce Ceneco’s generation rate amid high electricity prices in the province, as well as mitigate its exposure to the Wholesale Electricity Spot Market (WESM), where the electric cooperative is observed to be buying almost 74 percent of its supply. 

The grant of approval imposes obligation on EDC to provide replacement power to Ceneco, the ERC said.

But the ERC noted that the final generation cost that EDC can charge is still subject to their review. 

“If the final approved rate is lower than the provisional rate granted, the EDC is duty-bound to refund to Ceneco, and the latter is also mandated to credit the same in the electric bills of consumers,” the ERC said.

Vice Gov. Jeffrey Ferrer welcomed the development as the provincial government had earlier expressed strong support to Ceneco’s motion for issuance of provisional authority to implement the PSA with EDC.

In a letter dated May 27 addressed to ERC chairperson and chief executive officer Monalisa Dimalanta, Ferrer, who was acting governor at that time, stressed that issuing a provisional authority is crucial given the current state of energy supply and economic conditions in the province.

He said that their foremost priority is to ensure the continuous and reliable delivery of electricity to residents and businesses in their jurisdiction.