Meralco official says IPPs set to cut power rates

The Manila Electric Co. (Meralco) defended its two IPP (independent power producer) contracts saying these access consumers to power which is much cheaper than the electricity sold by the state-owned National Power Corp. (Napocor).

Meralco vice president and treasurer Rafael Andrada told a gathering of media practitioners at the "Round Table at Holiday Inn" the other day that present electricity rates could go down by 60 centavos per kilowatthour if their two IPPs plants were allowed to operate at 85-percent level.

However, due to "systems constraints," which Andrada said is not the fault of Meralco, the plants – one owned by Quezon Power and the other by First Gas – are operating at the 60-30-0 percent levels.

Napocor official Ed Orencia explained that its facilities cannot accommodate the two plants at the minimum ideal 85-percent level because these are accelerated projects–meaning, completed ahead of their schedules.

Andrada, however, clarified that the two plants were completed according to schedule and in line with the government’s five-year power development program.

The Meralco executive pointed out that it buys electricity from Quezon Power at P3.80 per kilowatthour and from First Gas at P3.40 per kilowatthour against Napocor’s rate of P4.20 per kilowatthour.

First Gas generates power from the natural gas sourced from the Malampaya field off Palawan. Natural gas is considered among the cleanest and environment-friendly sources of energy.