THE Energy Regulatory Commission (ERC) said it has partially approved the power deal between Manila Electric Co. (Meralco) and the subsidiary of San Miguel Corp. for the supply of 910 megawatts (MW).
The regulator granted its provisional authority to Meralco to source the capacity from the 1,200-MW Ilijan natural gas plant of South Premiere Power Corp. (SPPC) at the base rate of P5.9282 per kilowatt hour (kWh).
The capacity was lower than what Meralco and SPPC jointly filed for approval of their 1,200-MW power supply agreement (PSA).
The ERC said that the 290 MW is still contracted under an earlier contract previously issued authority by the commission at the levelized cost of electricity rate of P5.1363 per kWh.
“Thus, the Commission ordered the parties to continue honoring the subsisting contract and lower rate in respect of the 290MW capacity,” the regulator said.
The ERC said that the issuance of provisional authority “will further protect Meralco’s consumers from exposure to volatile prices in the Wholesale Electricity Spot Market (WESM) and displace volumes contracted by Meralco also from the Ilijan plant at higher prices.”
“Based on the Commission’s simulations, Meralco’s blended generation rate will be lower by an estimated amount of P0.2828/kWh, subject to adjustment after the Commission’s deliberation on the PSA’s final authority,” the ERC said.
It ordered the companies to submit proof of compliance with the requirement under the bidding’s terms of reference that “from December 26, 2023, and for the duration of the PSA, no capacity and electrical output within the contract capacity shall be contracted under an agreement apart from the resulting PSA of this bidding.” — Sheldeen Joy Talavera
