Meralco executes emergency power supply deal with San Miguel unit

MANILA, Philippines — Manila Electric Co. is implementing an emergency power supply agreement with a San Miguel Corp. Global Power subsidiary that will last for a year. 

In a statement on Wednesday, the Pangilinan-led power distributor said the EPSA for 300-megawatts baseload capacity with South Premier Power Corp. will be executed immediately starting March 26 until March 25, 2024. 

The Department of Energy gave them the go-ahead, exempting the power utility from a competitive selection process. 

Meralco indicated that the power supply agreement covers a two-part tariff of P1.75 per kilowatt hour fixed cost and variable cost indexed to fuel price swings. 

“The execution of the EPSA will help shield electricity consumers from volatile and potentially higher generation costs in the Wholesale Electricity Spot Market, which is historically recorded during the dry season when power demand spikes,” the statement read.

For context, Meralco said this EPSA will replace in part the capacity covered in the company 2019 power supply agreement with SPPC. That PSA was subjected to a Writ of Preliminary Injuction issued by the Court of Appeals. 

READ: Meralco signs emergency power deal after San Miguel fallout | Meralco issues notice of claim to SPPC | Court issues TRO on ERC order vs SMC-Meralco deal

The country’s largest power distributor is also seeking government approval for another EPSA. This time, it will cover the 180-megawatt baseload capacity needed to boost existing supply and plug gaps following disruptions from the Malampaya natural gas facility’s usual deliveries. 

Meralco said that particular supply gap was supposed to pass two rounds of competitive biddings, but fell short as no one showed up to bid.