Palawan Electric Cooperative (PALECO) and Delta P, Inc. (DPI), a subsidiary of Vivant Energy Corp., have advanced from their transition power supply agreement (TPSA) to a 15-year power supply agreement (PSA), which they initially signed in 2024.
The 40-megawatt PSA is a major step in delivering long-term, reliable power for Puerto Princesa and underscores PALECO’s commitment to address long-standing challenges in mainland Palawan.
The agreement is expected to ensure a reliable power supply and reduce electricity costs for PALECO’s member-consumer-owners (MCOs) in partnership with Vivant Energy, a Cebu-based company focused on rural and off-grid energization.
The transition marks the start of a phased delivery under the PSA, paving the way for more stable power in the province. This shift is expected to further reduce the electricity rates paid by PALECO’s MCOs as DPI will only recover the subsidized approved generation rate (SAGR) from PALECO.
Following the recent approval by the Energy Regulatory Commission (ERC) of PALECO and DPI’s transitory PSA, implemented from October 2024 to 2025, MCOs are expected to receive refunds from its implementation.
The parties said MCOs will receive significantly lower electricity bills through the universal charge for missionary electrification (UCME), further easing the burden on consumers who 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.
Delta P president Eric Omamalin said the milestone is “a proof of our commitment to provide secure and reliable power to Palawan – continuing our mission of bringing excellence to industries that improve everyday living.”
PALECO provides electricity to MCOs across 19 municipalities and the city of Puerto Princesa in Palawan province.
