Meralco to start sourcing 670 MW from spot market - BusinessWorld Online

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ABOITIZ Power Corp. (AboitizPower) will no longer supply power to electricity distributor Manila Electric Co. (Meralco) as their emergency power supply agreement (EPSA) ended on Wednesday. READ:

ABOITIZ Power Corp. will no longer supply power to electricity distributor Manila Electric Co. as their emergency power supply agreement ended on Wednesday.

The capacity is supposed to be covered by its power supply agreement with South Premiere Power Corp. , but this was subjected to a temporary restraining order issued by the Court of Appeals . Meralco sought the EPSA after SPPC, the administrator of the natural gas-fired power plant in Ilijan, Batangas, stopped supplying power to Meralco effective Dec. 7 last year.

The company cited a “change in circumstance” when surging fuel costs breached the price range contemplated during the execution of the contracts with Meralco. However, the Energy Regulatory Commission denied the petition, saying it had no basis as their PSA is a fixed-rate contract. Ms. Dimalanta added that the effect of the Aboitiz-Meralco EPSA was yet to be seen. “[W]e have no basis yet to ascertain rate impact from it or its expiration.”

 

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