MANILA, Philippines - Manila Electric Co. (Meralco) has welcomed the government’s decision to extend the transition supply contract (TSC) between Meralco and the National Power Corp. (Napocor), the Customer Choice Program (CCP) and the Ecozone Rate Program (ERP).
The TSC, which was mandated by the power reform law, has been extended until Dec. 26, 2012, or three months after the implementation of the retail competition and open access (RCOA) scheme, whichever comes first. The CCP, which is a joint program of Napocor and Meralco to provide time-of-use (TOU) benefits to qualified customers, will also have a new term alongside the TSC.
“We welcome these developments and we laud the government for ensuring the continued enjoyment by our more than five million customers of the benefits of the TSC, CCP and ERP,” Meralco said.
It added that this decision would benefit many industries and the country as well.
“We would like to express our gratitude to the various industry and trade organizations including the Philippine Chamber of Commerce and Industry (PCCI), Federation of Philippine Industries (FPI), Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) and the Philippine Economic Zone Authority (PEZA), for working with us in advocating for the extension of these programs,” it said.
The ERP, on the other hand, provides special generation rates to PEZA-accredited industries and other qualified customers, to enable them to become more globally competitive. The ERP was extended for a period of 30 days from Dec. 26, 2011 to Jan. 25, 2012 under the same terms and conditions.
The Power Sector Assets and Liabilities Management Corp. (PSALM) board also agreed to endorse to the Office of the President for approval the extension of the ERP for one year, or until Dec. 26, 2012, or upon the implementation of RCOA, whichever comes first.
It will be recalled that various consumer groups and industry players, particularly big-ticket customers and industries availing of the ecozone rate program, have been clamoring for the extension of the TSC, CCP and ERP.
The extension of these programs assures customers of lower and more stable power rates since the guaranteed power supply by Napocor-PSALM will mean less volatilities and price spikes brought about by spot market purchases.
Meralco serves over four million customers in Metro Manila and nearby provinces.