Melters Steel Corp. (MSC), a new steel company based in San Simon, Pampanga, has signed a power supply contract with the National Power Corp. (Napocor).
The contract for the supply of electric energy (CSEE) between Napocor and MSC took effect beginning July 26, 2007, and will be in force for a period of four years and five months, or until Dec. 25, 2011.
Napocor and MSC signed the CSEE after the Energy Regulatory Commission (ERC) granted the latter the provisional authority to source its electricity requirements directly from the state-owned power firm.
Initially, MSC will source 1.8 MW from Napocor from July until December 2007. When the steel company goes into full commercial operations by January 2008, Napocor will raise MSC’s supply to 2.3 MW until the end of the year.
By 2009, MSC’s electricity supply will be increased to 3.4 MW, before reaching the maximum level of 4.3 MW in 2010 and 2011.
By Napocor’s estimates, the CSEE with MSC will bring in additional revenues of P13.1 million per month, or P157.21 million per year. As with other Napocor customers, the charges that will be applied to MSC will be based on the ERC-approved Time-of-Use rate schedule.
MSC is the latest steel company to sign up with Napocor for its electricity requirements.
Other steel companies in Napocor’s roster of customers are SKK Steel Corp.; Puyat Steel Corp.; Stronghold Steel Corp.; Global Steelworks Corp. (formerly National Steel Corp.); Treasure Steelworks Corp.; Elegant Steel Corp. and Philippine Associated Smelting & Refining Corp.