Meralco to procure supply from spot market as 300-MW GNPower deal ended

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Meralco said it was working closely with the Department of Energy and other industry players to ensure adequate supply and protect customers from volatile and higher WESM prices, which would be crucial with the anticipated increase in demand during-- READ

30-day emergency agreement with Aboitiz Power Corp.-controlled GNPower Dinginin Ltd. for 300-megawatt baseload capacity ended Wednesday, thus exposing consumers to higher electricity rates.

The move will affect consumers who are already facing higher rates next month with the completion of Meralco’s distribution refund of P0.1923 per kilowatt-hour for residential consumers.WESM is the trading floor of electricity where prices are driven by demand and supply, resulting in the volatility of electricity prices. WESM prices are generally higher than those charged under power supply agreements.

GNPower Dinginin’s offer is higher than SPPC’s contract of P4.30 per kWh under the 2019 PSA. It is also higher than if the Energy Regulatory Commission approved the SPPC application for a rate hike.

 

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