MANILA, Philippines — Manila Electric Co. (Meralco) has secured a one year emergency power supply agreement (EPSA) with South Premiere Power Corp. (SPPC) for the supply of 300-MW baseload capacity.
The EPSA became effective last March 26 and will last until March 25, 2024.
Meralco received a Department of Energy (DOE) certification exempting EPSA from competitive selection process (CSP), thereby allowing its immediate implementation.
The EPSA partially replaces the capacity covered by the company’s 2019 power supply agreement with SPPC, which was subjected to a writ of preliminary injunction issued by the Court of Appeals (CA).
SPPC officially ceased supplying Meralco under its PSA last Dec. 7, following the issuance of a temporary restraining order by the CA.
“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 power distributor said.
Meralco said the EPSA reflects a two-part tariff composed of a P1.75 per kilowatt hour fixed cost and variable cost indexed on fuel price movements.
Its previous 300-MW EPSA with GNPower Dinginin Ltd. Co., which commenced on Dec. 15, 2022, ended last February 25.
Meanwhile, Meralco said it also sought the DOE’s approval for another EPSA for its 180-MW baseload capacity requirement meant to boost available supply and help address the reduced capacity of natural gas-fired power plants.
The 180-MW supply was originally subjected to two rounds of CSPs, which both failed due to lack of bidders.
Given the urgency of the additional supply for the dry season, Meralco sought approval to execute an EPSA instead.
“Meralco remains committed to its mandate to deliver stable, reliable, and least-cost supply to its 7.6 million customers and unceasingly works to mitigate any impact of challenging circumstances on its power rates,” the company said.