To reduce power rates, VECO to renegotiate contracts with power suppliers 

VECO File Photo (www.veco.com.ph)

CEBU CITY, Philippines – The Visayan Electric Co. (VECO) will be renegotiating several of its power contracts as part of its fulfillment to reduce power rates in Cebu.

In a recent press release, VECO announced it is preparing to hold a Competitive Selection Process (CSP) for power supply agreements.

With it, VECO President and Chief Operating Officer, Engineer Raul Lucero, said they are planning to renegotiate contracts with some of its power suppliers.

VECO’s move came after the Mandaue Chamber of Commerce and Industry (MCCI) asked the power utility firm to help the business sector get back on its feet. MCCI proposed slashing electricity rates through renegotiation of power contracts.

“We understand the difficulties that our customers are facing now that we are in a pandemic and the Visayan Electric management has decided that this is one way of helping our customers, both the public and business sectors,” Lucero said.

Steven Yu, president of MCCI, welcomed VECO’s response to their calls.

“We hope to deliver what is best for the Cebuanos especially with the pandemic ravaging our economies and businesses. We will work to make our business landscape as competitive and as conducive to doing business as much as possible,” Yu told CDN Digital in a text message.

VECO’s electricity rate for the month of February is at P10.41 kWh.

Based on their February 2021 generation rates, retrieved from the company’s official website, the utility giant spends around P1 billion for purchasing a total of 183,340,705 kilowatt-hours (kWh) from four power suppliers.

Renegotiating power contracts

Lucero said they will initiate the CSP ‘as soon as all documentary requirements are ready’.

MCCI will also participate in the CSP as the Third Party members of the Bids and Awards Committee, Yu confirmed.

Lucero explained that inviting MCCI, one of Cebu’s largest business-oriented organizations, was to ensure transparency in the contracting process.

“This is part of our effort to make our process transparent. We are always willing to work with our stakeholders in unpacking their concerns and finding a reasonable solution,” Lucero said.

Yu also shared the same sentiments with the Veco executive.

“We accepted the invitation of VECO to participate in TPBAC (Third Party Bids and Awards Committee) to help attain the objectives of transparency in the process. The TPBAC has been created in other distribution areas and has delivered the desired results,” he explained.

Veco supplies electricity to major cities and localities in Cebu such as the cities of Cebu, Mandaue, Talisay, Naga, and the towns of Liloan, Consolacion, Minglanilla, and San Fernando.

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/bmjo