Power retailer Manila Electric Co. and GNPower Dinginin Ltd. Co. filed separate applications with the Energy Regulatory Commission for approval of their two emergency power supply agreements.
Meralco and GNPD sought approval of the first EPSA executed on Dec. 14, 2022 for the purchase of 300 megawatts of capacity until Jan. 25, 2023.
The first EPSA involved a delivered a rate of P6.4062 per kilowatt-hour excluding VAT but including line rental.
Meralco and GNPD said the rate was lower by about P2.8246 per kWh if the distributor sourced the same capacity from the Wholesale Electricity Spot Market, the trading floor of electricity at P9.2308 per kWh.
The parties said that by sourcing the capacity through the Meralco-GNPD EPSA, Meralco’s average blended generation rate was reduced by about P0.2268 per kWh, resulting in savings to consumers of about P854 million.
Meanwhile, Meralco and GNPD also sought approval for the second EPSA involving 300 MW from Feb. 3 to Feb. 25, 2023.
They asked the ERC to approve the delivered rate of P8.1409 per kWh (VAT exclusive and line rental inclusive), which they said was lower by about P0.5119 per kWh if they sourced the same capacity from the WESM at P8.6528 per kWh.
The parties said that by sourcing capacity from EPSA in February, Meralco ’s average blended generation rate was reduced by about P0.0396 per kWh, resulting in savings to consumers of about P84.7 million.
Meralco secured an EPSA with GNPD from the latter’s 1,366-megawatt coal-fired power plant at Sitio Dinginin, Barangay Alasasin, Mariveles, Bataan.
Meralco said in a joint filing that its bilateral power supply contracts portfolio was reduced by 670 MW starting Dec. 7, 2022 following the suspension of its supply deal with South Premiere Power Corp. power dated Sept. 19, 2019 as a result of temporary restraining order and, subsequently, a writ of preliminary injunction issued by the Court of Appeals.
The power retailer said the suspension of the Meralco-SPPC PSA resulted in the need to replace the 670 MW and contribute to the availability and affordability of the supply of electricity to Meralco’s customers.
SPPC’s contract with Meralco was at P4.30 per kWh under the 2019 PSA. The ERC rejected its application for a temporary rate adjustment because of a change in circumstances.