MERALCO, SAN MIGUEL SEAL EMERGENCY POWER DEAL

distributor Manila Electric Co. (Meralco) finally secured a deal with San Miguel Corp. subsidiary South Premiere Power Corp. (SPCC) for the yearlong supply of 300 megawatts (MW) of baseload capacity in time for the summer season.

In a statement on Wednesday, Meralco said the emergency power supply agreement (EPSA) with SPCC reflected a two-part tariff composed of a P1.75-per-kilowatt-hour (kWh) fixed cost and a variable cost, which will depend on fuel price adjustments.

The deal took effect on March 26 and will last until March 25, 2024, following the Department of Energy’s (DOE) issuance of a certification exempting the emergency supply deal from the competitive selection process requirement, which allowed its immediate implementation.

“The execution of the EPSA will help shield electricity consumers from volatile and potentially higher generation costs in the Wholesale Electricity Spot Market, which is historically recorded during the dry season when power demand spikes,” Meralco said.

As of Wednesday, the Independent Electricity Market Operator of the Philippines website said spot market price was at P6.173 per kWh.

The yearlong emergency supply deal partially replaces the 670-MW capacity that was supposed to be covered by Meralco’s 2019 power supply agreement with SPCC, the implementation of which was put on hold by the Court of Appeals last January.

Meralco said it also sought the DOE’s approval for another supply deal for its 180-MW baseload requirement.

This will boost supply and address the reduced capacity of natural gas-fired power plants affected by limited supply from Malampaya.