Draka Phils. logs cost savings from power supply under RCOA

Draka Philippines of the Prysmian Group, a copper wire manufacturing facility inside the Mactan Economic Processing Zone in Cebu, has logged cost savings on its electricity bills after contracting its own power supply as underpinned by the retail competition and open access (RCOA) policy in the industry.

According to Leif Bajarias, the company’s financial controller, the cost savings gained had been on the range of R0.50 to R1.00 per kilowatt hour (kWh) – at least within that average on a monthly basis.

The manufacturing firm had underwritten a two-year power supply agreement for 2.6 megawatts capacity with Advent Energy, Inc., a retail electricity supplier (RES) unit of the Aboitiz Group.

Beyond the lower rates it is now experiencing on its bills, the company also takes pride in sourcing electricity supply from a renewable energy source – as it had contracted capacity from the Tiwi-Makiling Banahaw geothermal plants of AP Renewables, Inc.

“We have seen at least one peso reduction in our cost, that’s partly because our capacity factor also improved,” Bajarias said.

More than the cost savings, he further noted, that what they have been appreciating more from their RES provider had been the ‘value added services’ such as aiding them on energy management so they can optimize power use in their operations.

As asserted by Julius Legaspi, commercial manager for Draka Philippines’ automotive and energy business, having reliable power supply is a very critical component of their operations, hence, they had to make sure that their supplier could efficiently deliver on its commitment.