Power retailer Manila Electric Co. signed a new emergency power supply agreement with South Premiere Power Corp. for 180 megawatts of capacity to address demand until March 2024.
Meralco previously sought the Department of Energy’s approval for another EPSA for the 180-MW baseload capacity requirement to boost available supply for the dry months.
The 180-MW supply was subjected to two rounds of competitive selection process or bidding which both failed amid the lack of bidders.
“The 180 MW was given COE [certificate of exemption] already by DOE. We already executed EPSA with SPPC and was already implemented since April 1, in addition to the earlier 300 MW with SPPC that was given COE by DOE,” Meralco head of regulatory management office Jose Ronald Valles said.
The EPSA with SPPC is valid until March 25, 2024.
SPPC is a subsidiary of San Miguel Global Power Holdings Corp., the power arm of conglomerate San Miguel Corp.
Meanwhile, Meralco’s second round of CSP for 300 MW of peaking supply failed again. Meralco head of utility economics Lawrence Fernandez said the third party bids and awards committee did not receive any bids during the deadline.
“The TPBAC reported to the DU [distribution utility] that the conditions are present for the DU to enter into direct negotiations to try to meet the supply requirement, in accordance with DOE’s CSP guidelines,” Fernandez said.
Valles said Meralco welcomes offers from generators for the 300-MW supply.
“We are open to receive offers from all interested gencos for possible negotiation. At the moment, we have not received any definitive offer yet,” he said.
Meralco also executed an EPSA with SPPC for 300 MW baseload capacity effective March 26, 2023 until March 25, 2024.
The EPSA partially replaces the capacity covered by Meralco’s 2019 PSA with SPPC, which was subjected to a writ of preliminary injunction issued by the Court of Appeals.
SPPC sought a temporary increase in its rates under the 2019 PSA with Meralco but was rejected by the Energy Regulatory Commission.