Meralco criticized for using power outage threat to push for approval of power supply deals
An energy research institution has criticized distribution utility Manila Electric Co. (Meralco) for pushing for the approval of power supply agreements (PSAs) with coal-fired power plant developers by using as reason the expected higher electricity demand during summer.
“Meralco and its affiliate coal companies have pushed for the approval and operation of their coal-fired power plants under the guise of protecting consumers from power outages,” said Gerry Arances, executive director of Center for Energy, Ecology, and Development (CEED), said in a statement.
Mr. Arances criticized Meralco and its unit Redondo Peninsula Energy, Inc. for “bemoaning” the delay in the approval of their power supply contract but overlooking the interests of consumers, who opposed the approval.
He said the coal PSAs meant higher electricity prices since the fossil fuel had become more expensive than wind and solar energy.
CEED cited the seven PSAs forged by Meralco, which are all awaiting approval from the Energy Regulatory Commission (ERC), which it said have an average rate of P3.65 per kilowatt-hour (kWh). — Victor V. Saulon
