ERC ISSUES PROVISIONAL APPROVAL FOR MERALCO-SPPC DEAL

The Energy Regulatory Commission (ERC) has given  provisional approval for the Manila Electric Company (Meralco) and San Miguel-led South Premiere Power Corporation (SPPC) power supply deal.

In a statement on Wednesday, the ERC said it issued an order, dated May 9, 2024, allowing Meralco to get a supply of 910 megawatts (MW) from SPPC's 1,200-MW lijan Natural Gas Plant at the base rate of P5.9282 per kilowatt-hour.

Last January, Meralco announced that SPPC bagged the entire 1,200-MW 15-year power supply agreement (PSA) with the power distributor, being the lowest bidder.

The ERC, however, said that it granted provisional authority to the Meralco-SPPC deal as its evaluation found that a 290-MW capacity is still contracted under an earlier contract between the two parties.

The contract, a mid-merit supply ending December 2024, was previously issued an authority by the regulator at rate of P5.1363 per kWh.

The regulator, citing its simulations, said that Meralco's blended generation rate, resulting from the provisionally approved PSA and the existing contract, "will be lower by an estimated amount of P0.2828 per kWh, subject to adjustment after the Commission's deliberation on the PSA’s final authority."

"Thus, the Commission ordered the parties to continue honoring the subsisting contract and lower rate in respect of the 290 MW capacity," the ERC said. — VDV, GMA Integrated News

This article ERC issues provisional approval for Meralco-SPPC deal was originally published in GMA News Online.

2024-06-12T12:03:08Z dg43tfdfdgfd