Prifood Corp. Forges Strategic Energy Partnership with Corenergy
Cebu-based snack manufacturer Prifood Corp. has entered into a significant partnership with Corenergy, the retail electricity division of Vivant Energy, to supply power to its manufacturing facilities. This collaboration is anticipated to lower operating costs, enhance operational efficiency, and potentially stabilize product pricing for consumers, marking a pivotal step in the company's energy management strategy.
Details of the Agreement and Its Impact
The agreement specifically covers Prifood's plants located in Mandaue City, which have a combined electricity demand of up to 750 kilowatts. By aggregating its power requirements, Prifood gains increased bargaining power, enabling the company to secure more competitive rates and better manage energy consumption across its operations. This move is expected to result in substantial cost savings and improved resource allocation.
Embracing the Retail Aggregation Program
This partnership underscores a growing trend among businesses toward more flexible energy sourcing under the government's Retail Aggregation Program (RAP). Led by the Department of Energy and the Energy Regulatory Commission, RAP allows companies to pool their electricity demand and negotiate directly with suppliers. This initiative aims to deliver lower power costs and customized energy solutions, fostering a more competitive and efficient market environment.
Benefits for Manufacturers and Consumers
Lower and more predictable energy costs are crucial for manufacturers, where electricity constitutes a major component of production expenses. Enhanced cost efficiency can help companies maintain stable pricing, improve supply reliability, and reinvest savings into expansion efforts. Ultimately, these benefits extend to both retailers and end consumers, contributing to a more resilient economic ecosystem.
Prifood as an Early Adopter in the Visayas
Prifood, renowned for brands such as Super Crunch and Super Delights, is among the early adopters of RAP in the Visayas region. Its participation signals increasing uptake of the program beyond large industrial players, especially as regulators work to lower the threshold for contestable customers. This expansion is expected to encourage more small and medium-sized enterprises to explore similar energy procurement strategies.
Insights from Company Leaders
Corenergy, which operates as a "gentailer" combining power generation and retail supply, emphasized that this setup allows businesses to align energy use with operational goals. This includes optimizing consumption during peak and off-peak periods, boosting productivity, and supporting long-term cost control measures.
"For us, innovation goes beyond the product. It extends to how we run our operations," stated Prifood assistant general manager Enrico Yap. He highlighted that the partnership promotes more sustainable and efficient energy use, aligning with broader corporate sustainability objectives.
Marko Sarmiento, head of Corenergy Retail and Sales, added that this arrangement provides companies with greater control over their energy strategy, enabling them to drive profitability and enhance overall performance.
Future Implications for the Energy Sector
With regulators expanding access to retail electricity programs, more small and medium-sized enterprises are anticipated to follow Prifood's lead. This shift could reshape how businesses procure power and manage costs in an environment of rising energy prices, fostering innovation and competitiveness in the manufacturing sector.
