CITY OF SAN FERNANDO, Philippines?At least 80,000 consumers in Pampanga are expected to pay 15 centavos less per kilowatt hour starting January 2010 and at least 40 centavos less by 2011 through clean energy.
The rate reduction loomed after the signing of an energy supply contract between AboitizPower and a local firm.
The rate reduction comes as the government exempts renewable energy from value-added tax, said Jose Lazatin, senior vice president and general manager of the San Fernando Electric Light and Power Co. (SFELAPCO).
The rate goes for P7.47 per kWh, inclusive of VAT.
Lazatin signed the deal together with Austin Herrick, president of AboitizPower?s AP Renewables Inc.; Luis Miguel Aboitiz, AboitizPower senior vice president for trading and marketing; and Michael Escaler, SFELAPCO president.
AboitizPower, in a briefing, said its contract is good for three years starting Dec. 26, 2009.
It will produce energy from the company?s Tiwi and Makban geothermal facilities in Albay and Laguna, respectively, and from the Hedcor-Irisan hydroelectric plant in Benguet.
AboitizPower will supply 25 megawatts for the first nine months until the contract between SFELAPCO and the National Power Corp. expires on Sept. 25, 2010.
By then until Sept. 25, 2012, SFELAPCO will use 90 percent of clean energy, with AboitizPower as its exclusive supplier. The remaining 10 percent will be obtained from the wholesale electricity spot market.
?We?re very proud to be partnering with AboitizPower on this. Clean energy is the key to the growth and efficiency of SFELAPCO, to lower rates for consumers,? Escaler said, calling the new move a milestone.
?With climate change and global warming, the use of clean and renewable energy is the way to go,? he said.
Aboitiz said SFELAPCO is the first private distribution firm to get 100 percent of its renewable energy from AboitizPower.
Aboitiz said the transition period would not entail additional infrastructure as Napocor will continue to provide transmission services.
Lazatin said SFELAPCO chose Aboitiz after the Napocor admitted it would experience power shortage by next year.
