CITY OF SAN FERNANDO – Pampanga’s businessmen asked the Energy Regulatory Commission to give status on the Power Supply Agreement (PSA) for this capital city in order to arrest “uncertainty and financial strain” on local residents and enterprises.
In a letter to the Energy Regulatory Commission (ERC) dated August 19, 2024, the Pampanga Chamber of Commerce and Industry (PamCham) has requested for the status regarding the approval of PSA between San Fernando Electric Light and Power Company Inc (SFELAPCO) and Aboitiz Power (AP).
The request comes at the heels of a separate approval given to the PSA between SFELAPCO and the Masinloc Power Partners Co. Ltd. (MPPCL).
Both PSAs were submitted to ERC in July this year as mandated.
PamCham stated that SFELAPCO has noted that its PSA with MPPCL “covers only 33 percent of the power supply, leaving the 67 percent to the Wholesale Electricity Spot Market (WESM)”.
Under PSAs, power rates are pegged for the entire validity of a contract while power supply purchased in WESM fluctuates as buyers and sellers trade electricity as a commodity where prices are determined based on actual demand and supply.
Pamcham raised concern that unstable power rates lead to “volatility in power rates”, including rising costs for consumers that include the business community.
“This situation is creating uncertainty and financial strain within the business community in San Fernando, making it challenging for businesses to plan and operate effectively,” the letter stated.
Rene Romero, PamCham past president and director for Infrastructure Development, said that a stable power supply is vital for maintaining a conducive business environment in the city.
“The business community needs to have a stable power supply and rates that are pegged for a certain period so that we would know how to project our expenditure in terms of power consumption,” Romero said.
He added that PamCham has also requested ERC to inform the public about the delay in PSA with Aboitiz and when a resolution could be expected.