Batelec II, Bac-Man power supply deal gets provisional nod

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QUICK READ: Energy Development Corporation, through its Bac-Man geothermal facility, is set to provide clean and renewable energy to communities powered by Batelec II.


The Energy Regulatory Commission (ERC) has granted provisional approval to the power supply agreement (PSA) between Batangas II Electric Cooperative Inc. (Batelec II) and Bac-Man Geothermal Inc. (BGI).


“The Commission expects that the provisional approval of the PSA between Batelec II and BGI will result (in) a positive development in the energy supply chain in Batelec II’s franchise area.


This will provide some relief to Batelec II’s customers as their power supply will be augmented, which will mean more stable electricity,” said ERC Chairperson and CEO Agnes VST Devanadera.


In the ERC’s Notice of Resolution, the approved PSA rate shall be P4.3767 per kilowatt-hour.


The agency also directed the two firms that interest or penalty and any other charges incurred by Batelec II shall not be allowed to be passed on to its member-consumers and that the final generation cost that can be recovered by BGI and the contract capacity by Batelec II shall be reviewed and evaluated.


The ERC said the provisional approval is necessary in view of the fact that this will be used by Batelec II in its compliance with the requirements of the Renewable Portfolio Standards for on-grid areas. Also, this will serve as additional capacity to secure a more stable, reliable, and efficient source of power supply for a term of nine years, as well as at a reasonable rate.


“The Commission, however, reminds Batelec II and BGI that in the event that the final rate is determined to be lower than the provisional authority granted, the amount corresponding to the reduction shall be refunded by BGI to Batelec II, which shall thereafter be refunded to its member-consumers by crediting the same in their electric bills over a period to be determined by ERC.”


The Energy Development Corporation (EDC) is the leading 100% clean, renewable energy company in the Philippines, with over 40 years of experience in geothermal technology. With power plants situated across the country, EDC is the world’s largest vertically integrated geothermal company. The company also strives to provide the best customer and value-adding services to all its customers. To learn more about lowering your business’ carbon footprint by shifting to renewable energy, visit or email [email protected]