Negros Occidental Gov. Eugenio Jose Lacson, provincial consultant on energy Rafael Coscolluela and Bacolod Mayor Alfredo Abelardo Benitez (l-r) at the meeting with power sector representatives on Wednesday.*
Bacolod Mayor Alfredo Abelardo Benitez said they are aiming to bring power rates down by ₱3 or more per kilowatt hour in Bacolod City and Negros Occidental by tapping local renewable energy sources.
Benitez said if supply is sourced directly from biomass and solar power plants in Negros, it should cost ₱ 3 less per kWh compared to coal generated power.
He said the supply contracts of the three electric cooperatives in Negros Occidental are mostly with coal-powered power plants outside of Negros.
“Our contracts are mostly with coal and coal has more than doubled in price. So if we can get away from coal, and access renewable supply in the island we will reduce by at least ₱3 because aside from, the reduction of the generation cost there is no VAT (Valued Added Tax) on renewable energy,” he said.
Benitez said before coal power was cheaper than renewable energy but now it’s the other way around.
The question is how long coal power prices will remain high, he said.
Benitez said at the meeting he and Gov. Eugenio Jose Lacson held with the power sector on Wednesday, one of the agreements was for the three electric cooperatives in Negros Occidental to “aggregate all of their demands”.
That means they will buy their power supply together and aim for renewable sources in the province to bring down the price of electricity by ₱3 per kWh or probably even more, he said.
Benitez said he is asking the renewable companies to provide power at very low prices in exchange for long term contracts.
Lacson also said “the future plan is to have a joint venture between the LGUs (local government units) and the power suppliers, specifically renewables”.
They learned that if it is a joint venture between the LGUs and the power suppliers, they can directly negotiate with the electric cooperatives without bidding, the governor said.
“We have to see the numbers, how much it will cost the LGUs. This is for the future, we felt that this is one way of bringing down the cost of energy,” Lacson said.
Lacson said the majority of Negros’ source of energy is coal, which right now is expensive.*