Food manufacturer taps retail power to lower costs

Food manufacturer taps retail power to lower costs
SunStar Business
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CEBU-BASED snack manufacturer Prifood Corp. has partnered with Corenergy, the retail electricity arm of Vivant Energy, to supply power to its manufacturing facilities— a move expected to lower operating costs, improve efficiency and potentially stabilize product pricing for consumers.

The agreement covers Prifood’s plants in Mandaue City with a combined demand of up to 750 kilowatts. By aggregating its electricity requirements, the company gains stronger bargaining power, allowing it to secure more competitive rates and better manage energy consumption across its operations.

For businesses, the partnership highlights a growing shift toward more flexible energy sourcing under the government’s Retail Aggregation Program (RAP). The initiative, led by the Department of Energy and the Energy Regulatory Commission, allows companies to pool their electricity demand and negotiate directly with suppliers — resulting in lower power costs and customized energy solutions.

Lower and more predictable energy costs are critical for manufacturers where electricity is a major component of production expenses. Improved cost efficiency can help companies maintain stable pricing, enhance supply reliability and reinvest savings into expansion — benefiting both retailers and end consumers.

Prifood, known for brands such as Super Crunch and Super Delights, is among the early adopters of RAP in the Visayas. Its participation signals increasing uptake of the program beyond large industrial players, particularly as regulators move to lower the threshold for contestable customers.

Corenergy, which operates as a “gentailer” combining power generation and retail supply, said the setup allows businesses to align energy use with operational goals. This includes optimizing consumption during peak and off-peak periods, improving productivity and supporting long-term cost control.

“For us, innovation goes beyond the product. It extends to how we run our operations,” said Prifood assistant general manager Enrico Yap, noting that the partnership supports more sustainable and efficient energy use.

Corenergy Retail and Sales head Marko Sarmiento said the arrangement gives companies greater control over their energy strategy, enabling them to drive profitability and performance.

With regulators expanding access to retail electricity programs, more small and medium-sized enterprises are expected to follow suit — potentially reshaping how businesses procure power and manage costs in an environment of rising energy. / KOC

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