ILOILO CITY – A conglomerate of the Razon group’s power distribution services in the Visayas is pushing for contracts that aim to ease the negative impact of fluctuating power rates that affect consumers across the country.

Primelectric Holdings Inc. recently presented to the Energy Regulatory Commission (ERC) the possible solutions with forward contract (FC), hedging contract (HC), and contract for difference (CFD).

Primelectric subsidiaries MORE Electric and Power Corp. (MORE Power) in Iloilo City, Negros Power in Negros Island, and Bohol Light in Bohol are proposing to put in place these types of contracts in purchasing electricity to protect Filipino consumers from unstable power rates in the market, especially during the summer season.

"(These types of contracts) can be very helpful in predicting energy prices and avoiding price shocks to consumers,” said President and CEO Roel Castro.

“What investors and consumers hate is unstable prices and they get surprised when the bill comes. These contracts will be very helpful and useful,” added Castro.

However, there is currently no regulatory framework that can holistically address this major concern – from power generation, power transmission to power distribution – as consumers feel the brunt when the costing is passed on to them.

Castro said Primelectric’s initiative was welcomed by ERC Chairman and Chief Executive Officer Atty. Francis Saturnino C. Juan.

The initiative aims to make power rates affordable in the midst of unstable power pricing in the Wholesale Electricity Spot Market (WESM).

ERC is also pushing for a “well-designed framework” that could “allow public utilities to mitigate extreme price spikes, contributing to greater price stability, predictability for end-users over time, and avoidance of bill shocks.”