The Energy Regulatory Commission (ERC) granted a provisional approval for the power supply agreement between the Batangas II Electric Cooperative (Batelec II) and Bac-Man Geothermal Inc. (BGI), to ease power interruptions within the distributor’s franchise area.
However, the ERC’s resolution said the agreement should be priced at P4.3767 per kilowatt hour. It also orders Batelec II not pass on any interest or penalty and any other charges it incurs to customers.
ERC added a final rate will be decided but noted the provisional approval for the PSA is necessary.
This will enable Batelec II to comply with the requirements of the renewable portfolio standards for on-grid areas, a policy that mandates distribution utilities to source an agreed portion of their energy supply from eligible RE suppliers to contribute to the growth of the industry in the country.
