Negros Electric and Power Corp. (Negros Power) expects improved reliability and cost efficiency in its power portfolio following a 20-megawatt (MW) power supply agreement (PSA) secured from Aboitiz Power Corp.

The companies said in a joint statement on Sunday that the deal, signed on 13 November, is expected to deliver a more stable, sustainable, and cost-efficient supply for Central Negros.

Aboitiz Power, through its Therma Visayas Inc. unit, won the contract under a competitive selection process (CSP) conducted by the Third-Party Bids and Awards Committee for Negros Power’s capacity requirements.

Under CSP rules, distribution utilities may sign a PSA only after receiving at least two qualified bids, and may enter direct negotiations with other suppliers only after two failed bidding rounds.

Roel Castro, Negros Power president and chief executive officer, said the long-term supply deal is timely as demand continues to rise. 

“The terms we’ve secured are crucial as we continue to help drive economic development. Our customer base grew from around 220,000 to 245,000 in just one year. 

A proper supply strategy ensures we can meet the increasing demand. With this long-term agreement, we can truly welcome the future with reliable service for our communities,” he explained.

James Yu, Aboitiz Power's head of revenue operations, said the agreement ensures a dependable supply amid recent disruptions. 

“This signing comes at a meaningful time, especially after the recent typhoons and calamities that challenged our services,” he expressed.

Negros Power serves more than 220,000 accounts across Bacolod, Bago, Talisay, Silay, Murcia, and Don Salvador Benedicto.

Aboitiz Power plans to add 3,600 MW of new renewable energy capacity—raising its renewable energy portfolio to 4,600 MW by 2030—while pairing it with thermal assets to meet the country’s baseload and peak demand for a total targeted portfolio of 9,200 MW.