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EDC seals new supply contract with manufacturing company.

By Myrna M. Velasco

Lopez-led Energy Development Corporation (EDC) has just sealed a new power supply agreement (PSA) with manufacturing firm Citizen Machinery Philippines (CMP) for the latter's facility in Tanauan, Batangas.

The supply deal, according to EDC, is within the ambit of retail competition and open access (RCOA) policy or the fiat that allows big end-users to directly contract for their own electricity supply.

The PSA covers two years for a 2.5-megawatt capacity - and the electricity supply to be delivered to Citizen Machinery Philippines (CMP) shall be coming from EDC's Bacon-Manito geothermal plant in the Bicol region.

The supply delivery will commence on December 26 this year and will stretch until the 25th of December in year 2020.

CMP is into manufacturing and assembly of automatic lathe machines, which produces other machines for use in different industries.

As noted by Citizen Machinery Philippines President Akihide Kanaya, since their company is into power-intensive and electricity supply-sensitive manufacturing sector, "we desire to be supplied by stable and low-cost electricity, especially since our foundry consumes much power."

He opined that the geothermal plant of EDC "meets that criteria," while adding that this is also their company's share to society's sustainability agenda - or leaning on power sources that will not only feed on a growing economy but will also be viable for the environment's health.

Kanaya stressed that this enable them to do their share to society "through innovative manufacturing solutions, while recognizing our impact to the environment."

EDC is the country's biggest geothermal power producer - and it latches on a portfolio that is entirely leaning on renewable energy-resource generation of electricity.

Power companies in the Philippines are now into intense competition of cornering customers via the RCOA policy or on the retail space because that has been part of the policy reform sanctioned by the Electric Power Industry Reform Act.


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Title Annotation:Business News
Publication:Manila Bulletin
Geographic Code:9PHIL
Date:Dec 12, 2018
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