A new retail electricity supply agreement between The BE Group of Companies and Corenergy is expected to help businesses in Cebu’s prime office districts better manage energy costs and performance. This comes at a time when power demand is rising alongside the expansion of the IT-BPM sector.
Coverage and Impact
The agreement covers Mabuhay Towers in Cebu Business Park and Cebu IT Park, hubs driven by the expanding IT-BPM sector. In these locations, 24/7 operations make electricity a major expense. By shifting to a retail electricity supply arrangement under the government’s retail competition framework, tenants in Mabuhay Towers are expected to gain more predictable power costs and tailored energy solutions.
Role of Corenergy
Corenergy, a unit of Vivant Energy, operates under a “gentailer” model that aligns power supply with actual demand. This approach helps shield clients from market price volatility. For businesses, the shift signals a move away from treating electricity as a fixed overhead toward using it as a strategic lever for cost control and operational efficiency. This is particularly relevant for IT-BPM firms, where uninterrupted and optimized power use directly impacts service delivery and margins.
Regulatory Changes Ahead
The partnership also comes ahead of a regulatory change by the Energy Regulatory Commission, which plans to lower the contestability threshold to 100 kilowatts by June 2026. The move is expected to widen access to retail electricity supply, allowing more small and medium-sized enterprises to choose their power provider.
Market Implications
Industry players said the reform could accelerate competition in the electricity market and encourage more commercial establishments to adopt customized energy strategies—potentially lowering operating costs across sectors and improving business resilience amid fluctuating energy prices. For Cebu’s office market, the development reinforces the growing importance of energy management in sustaining the region’s appeal as a business hub, particularly as firms scale operations and seek more cost-efficient ways to support long-term growth.
