The Manila Electric Co. (Meralco) has partnered with GNPower Dinginin Ltd. signed an emergency power supply agreement (EPSA) with Aboitiz Group for the delivery of 300 MW base load capacity from December 15 to January 25, 2023.
This will add 670 MW of capacity under Meralco’s power supply agreement with South Premiere Power Corp. (SPPC), which was subject to an injunction (TRO) issued by the Court of Appeals.
The EPSA, which has a rate of Pta 5.96 per kWh, will reduce Meralco’s exposure to the Wholesale Electricity Spot Market (WESM) and in turn will partially protect its customers from volatile and potentially higher generation costs.
Meralco said it is exhausting all measures to continue providing its customers with sufficient and reliable power while mitigating the impact of the TRO on its customers.
The utility previously filed a lawsuit against SPPC to recover the additional costs it incurred as a result of the 60-day TRO on its Power Supply Contract (PSA).
Meralco has been procuring 670 MW of contract capacity from WESM since deliveries ceased on December 7th.
In its letter dated December 12, 2022, Meralco requested SPPC to pay the price difference between the contract price and the WESM price that Meralco would be exposed to during the effectiveness of the TRO.
The claims, Meralco added, are in addition to any applicable fines, penalties and liquidated damages under the PSA if the Circuit Court of Appeals ultimately rules the main case and denies SPPC’s motion.
Meralco expects power sales to grow nearly 6 percent year-on-year this year due to the strong recovery in the Philippine economy.
“We expect almost 6 percent gigawatts [GWh] Revenue growth for 2022 compared to 2021, and even 4 percent above 2019 numbers,” said Ferdinand Geluz, Meralco’s Chief Commercial Officer.
He said the key drivers of the projected growth could be attributed to the strong commercial segment. “The recovery of the strong commercial segment as well as modest growth in the industrial sector, driven by some industries such as plants, F&B [food and beverage] has really given a boost.”
The utility previously reported that sales volumes rose 6 percent to 36,553 GWh by the end of September this year from 34,398 GWh in the same period last year.