SAN JOSE CITY – The city government has sought the immediate review of a power supply contract between the local distributor San Jose Electric Coop. Inc. (Sajelco) and producer Masinloc Power Partners Co. Ltd. (MPPCL) for allegedly being “onerous” against the consumers.
Mayor Mario Salvador said he personally appealed to Sen. Raffy Tulfo, as chair of Senate committee on energy, and Sen. JV Ejercito to make sure the Energy Regulatory Commission (ERC) does a check on the contract.
Earlier, Salvador submitted to the ERC Sangguniang Panlungsod Resolution No. 22-171 which calls for “immediate review of the power supply agreement (PSA)” between Sajelco and MPPCL.
“Whereas, the provisions in the PSA do not provide safeguards on increase in coal prices which are automatically payable on to Sajelco,” the resolution reads, adding “The pass-through charges on generation rate translate to an increase of P3/KWh from December (2021) to June 2022.”
Salvador said the spike dramatically hurt both household and commercial consumers in recent months.
From P14.90 in June, the per kilowatt hour price jumped to P16.90 in July, he said. “In one month, P2 per kilowatt kaya hindi namin alam ngayong August kung magkano ang lilitaw sa resibo,’ Salvador said.
This northern Nueva Ecija city is also home to 33 rice mills that supply staple to Metro Manila and other provinces.
“Sigurado tataas ang milling expenses,” he answered when asked
