Power retailer Manila Electric Co. said over the weekend it executed another emergency power supply agreement with Aboitiz-controlled GNPower Dinginin Ltd. for 300 megawatts of baseload capacity.
This followed the expiration of its contract with GNPD on Jan. 25. The new EPSA is effective from Feb. 3 to Feb. 25, 2023.
Meralco said the EPSA would lessen the company’s exposure to the Wholesale Electricity Spot Market—the trading floor of electricity.
“The contract forms part of Meralco’s efforts to ensure sufficient supply and manage its rates as a result of the cessation of 670-MW supply covered by its power supply agreement with South Premiere Power Corp., which was subjected to a writ of preliminary injunction issued by the Court of Appeals,” the company said.
Meralco sources said, however, the new contract would not carry the fixed price of P5.95 per kilowatt-hour under the previous agreement.
Meralco’s previous ESPA with GNPD from the 1,336-MW GNPower Dinginin Plant in Mariveles, Bataan carried a fixed price which covered Dec. 15, 2022 to Jan. 25, 2023.
The EPSA partially replaced the 670 MW capacity under Meralco’s 2019 power supply agreement with SMC Global Power Holdings Corp. subsidiary South Premiere Power Corp. SPPC’s contract was at P4.30 per kWh under the 2019 PSA.
SPPC stopped supplying to Meralco on Dec. 7, 2022, following the CA’s issuance of the TRO, prompting the distributor to look for other suppliers or tap the WESM.
SMCGP asked the ERC for a temporary rate increase, citing gas constraints for SPPC’s Ilijan plant and an unprecedented rise in coal prices for the 1,200-MW Sual coal plant in Pangasinan under San Miguel Energy Corp.
The ERC rejected the petition, forcing SMGCP to elevate the matter to the CA where it was granted a WPI for the SPPC case.