Visayan Electric to renegotiate contracts with power suppliers

·3 min read

HEEDING the appeal of the business chambers in Cebu, the Visayan Electric Co. is set to renegotiate some of its power contracts in efforts to lower power rates in its franchise area.

Visayan Electric president and chief operating officer engineer Raul Lucero announced that the electric utility has considered renegotiating its contracts with some of its power suppliers and is in fact already preparing to hold a competitive selection process (CSP) for power supply agreements.

“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.

Lucero said the Visayan Electric has invited the Mandaue Chamber of Commerce and Industry (MCCI) to participate in the CSP as the third-party member of the bids and awards committee (TPBAC) 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.

Lucero said the conduct of the CSP, which will start as soon as all documentary requirements are ready, signifies the commitment of Visayan Electric to its customers to provide reasonably priced electricity.


“We accepted the invitation of Visayan Electric to participate in the TPBAC to help ensure the transparency of the process. This way, we will contribute to the process our independence and help protect the rights of the consumers,” said Yu in a text message Saturday, April 10.

“We hope to make the power rates reflective of an independent and competent CSP. If I may make a reference, Meralco also has a TPBAC, among others. It has so far brought about positive results to the consumers,” he added. “This process has been the best practice in many parts of the world. It’s a positive development for the Cebuano consumers.”

The MCCI earlier asked the Visayan Electric to particularly consider renegotiating the prices of two of the highest power producers for the distribution utility — Cebu Private Power Corp. and Green Core Geothermal Inc.

“A year into the pandemic and everyone is still trying to rise above our different problems. It is very difficult to recover when the businesses are saddled with debts and financial obligations that are piling up. While there are people and businesses that are already in the recovery phase, there are still those who have yet to get back on their feet,” Yu earlier said.

“The Mandaue Chamber is willing to participate in this process and work with Visayan Electric to find a reasonable solution to this problem, of course within the bounds set by regulatory rules,” he added.

The Visayan Electric serves the cities of Cebu, Mandaue, Talisay, Naga and four municipalities of the greater part of Metro Cebu — Liloan, Consolacion, Minglanilla and San Fernando. It is owned and managed by publicly listed Aboitiz Power Corp. and Vivant Corp. (KOC)