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Philippines : NEW power deal gained by Meralco
Publish Date : 17-May-2014
The Energy Regulatory Commission sanctioned the interim power supply agreement between distributor Manila Electric Co. and 1590 Energy Corp., operator of the 215-megawatt Bauang diesel plant in La Union. 1590 Energy is a unit of Vivant Corp., managed by the Garcia family of Cebu.
ERC said that after evaluation of documents and hearing of testimonies of witnesses, it found the approval and implementation of the interim supply agreement to be beneficial to Meralco’s customers by way of reliable, continuous and efficient supply of electricity at reasonable costs.
Meralco mentioned the necessity to expand power supply from April 1 to June 30 due to the planned maintenance shutdowns and forced outages of baseload coal and gas-fired power plants in Luzon.
Meralco, under the supply agreement, will acquire 140 MW from 1590 Energy from April 1 to June 30, 2014 at a simulated price of P10.5970 per kWh in April, P10.6341 per kWh in May and P10.4225 per kWh in June.
Meralco said that the rate offered by 1590 was the most reasonable rate that it can obtain from the available sources and at the same time result in a lower rate than Meralco’s taking power from the WESM.
