THE Energy Regulatory Commission (ERC) has allowed Manila Electric Co. (Meralco) to obtain 100 megawatts (MW) of baseload power supply from the coal-fired power plant of a unit of Aboitiz Power Corp.
In a call promulgated on Aug. 22, the ERC granted interim relief to Meralco and GNPower Dinginin Ltd. Co. (GNPD) for the implementation of their power supply agreement (PSA) at an annual capability rate of P17,228.88. This translates to P1.9668 per kilowatt-hour, excluding other charges comparable to fuel costs.
The ERC said the proposed rates are lower than the previously approved PSA rates for a similar power plant.
“The Commission also finds that the proposed rate in the topic PSA is lowered in comparison with the rates of other Meralco suppliers utilizing coal and natural gas as fuel,” the regulator said.
GNPD owns and operates a 1,336-MW coal-fired power plant in Mariveles, Bataan.
The facility supplier emerged as one in all the winning bidders within the competitive selection process (CSP) conducted by Meralco in August last 12 months, offering 100 MW out of the required contract capability of 600 MW.
The PSA will cover Meralco’s future baseload requirements over a 15-year period starting Aug. 26.
The ERC directed GNPD to offer alternative power “in any respect times, even in the course of the planned or forced outage of the plant.”
The businesses must file a motion with the ERC and specify the grounds for termination, in accordance with the PSA and CSP Guidelines, in the event that they wish to finish the deal.
“Any increase within the contracted capability under the applicants’ PSA shall require prior approval from the Commission. That is to be certain that Meralco supplies its electricity within the least-cost manner to its captive market,” the ERC said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
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