Signed in 2024 and now moving into phased implementation, the long-term PSA cements a partnership that promises reliable power, lower generation costs, and stronger energy security for thousands of PALECO’s member-consumer-owners (MCOs).
Milestone toward long-term power stability
The agreement marks a crucial step toward addressing long-standing power supply challenges in Palawan, where fluctuating rates and unstable generation have hindered development, Vivant Energy said in a statement.
Under the PSA, Delta P will supply electricity to PALECO’s franchise area for 15 years. The company’s improved generation facilities and operational efficiencies are expected to ensure a consistent, high-quality power supply across Puerto Princesa and surrounding municipalities.
“This milestone is proof of our commitment to provide secure and reliable power to Palawan — continuing our mission of bringing excellence to industries that improve everyday living,” said Eric Omamalin, president of Delta P Inc.
Lower electricity costs and consumer refunds
The transition to the long-term PSA is expected to further reduce generation rates for consumers, as DPI will recover only the Subsidized Approved Generation Rate (SAGR) from PALECO.
Following the Energy Regulatory Commission’s (ERC) approval of the Transitory PSA (implemented from October 2024 to 2025), MCOs are also set to receive refunds from its execution. Additionally, lower rates under the Universal Charge for Missionary Electrification (UCME) are projected to ease costs for households that previously paid unsubsidized generation rates.
“Through this transition, PALECO assures Palaweños that we are keeping our promise of delivering reliable service, stable power, and lower rates, as we move toward Palawan’s development,” said PALECO general manager Rez Contrivida.
Partnership anchored on sustainable progress
The collaboration with Vivant Energy, a Cebu-based power firm known for its rural and off-grid energization projects, underscores a shared commitment to inclusive energy development.
With the phased rollout of the PSA now underway, PALECO and Delta P aim to deliver consistent, cost-effective, and sustainable power — paving the way for new investments and improved quality of life in Palawan. —Ed: Corrie S. Narisma
