The Palawan ELectric Cooperative (Paleco) has secured provisional authority from the Energy Regulatory Commission (ERC) to implement its 15-year Power Supply Agreement (PSA) with Delta P, Inc., a subsidiary of Vivant Energy Corporation. This marks a significant step toward resolving Palawan’s persistent power supply challenges and easing the burden of high electricity costs on consumers.

 

In a recent notice of resolution, the national energy regulator approved the PSA forged between Paleco and Delta P through a competitive selection process. With this approval, the contracted 40-megawatt supply from Delta P will soon be delivered under more favorable terms for consumers.

 

“This ERC approval shows that Paleco is taking concrete action to solve the power woes of our member-consumers,” said Paleco General Manager Rez Contrivida. “Through this agreement, we are not only locking in an additional 40 MW of capacity but also bringing relief to Palaweños through lower electricity rates.”

 

Once implemented, the PSA will enable Paleco consumers to benefit from lower generation charges, as the supply is eligible for subsidy through the Universal Charge for Missionary Electrification (UCME). Consumers will only be billed the Subsidized Approved Generation Rate (SAGR) for Mainland Palawan, with the balance covered by the National Power Corporation through the UCME—offering a stark improvement over current unsubsidized emergency and transitory supply arrangements.

 

With this development, Paleco moves closer to stabilizing Palawan’s energy supply while ensuring more affordable electricity for households and businesses alike.