Meralco taps Therma Mobile

MANILA, Philippines - Manila Electric Co. (Meralco), the country’s biggest power distributor, has tapped Therma Mobile Inc. (TMO) for 200 megawatts of capacity starting April 15.

TMO is supplying 150 MW to Meralco but the capacity will increase to 200 MW starting April 15 and this will go up further to 234 MW by the end of the month.

The move is part of Meralco’s efforts to help mitigate the possible impact of the tight power supply situation this summer given that a number of power plants are scheduled to go on maintenance shutdown.

Meralco has signed Interim Power Agreement (IPSA) with various power suppliers to lessen its exposure to the WESM this summer.

Meralco signed contracts with 1590 Energy Corp. for the purchase of up to 140 MW capacity of 1590’s Bauang Power Plant. Meralco also signed an agreement with Global Business Power (GBP) for the purchase of up to 64 MW capacity output from GBP’s Toledo Power Co. and Panay Power Corporation, both of which started supplying to Meralco last April 3.

Yet even with the bilateral contracts, electricity rates are estimated to go up in in April, May and June, according to the generation charge estimates submitted by Meralco to ERC.

The generation charge in April went up to P5.90 per kilowatt-hour from P5.21 per kwh in March and this is estimated to increase further to P7.69 per kwh in May and to P6.57 per kwh in June, according to Meralco’s estimates.

The generation charge is the cost of power purchased the previous month. It accounts for roughly 60 percent of the total electricity bill.

The estimates are contained in Meralco’s interim supply agreement with power generators for the period, which the ERC has to approve.