Manila Electric Company (MERALCO) has entered into an Emergency Power Supply Agreement (EPSA) for 200 megawatts (MW) worth of baseload capacity, set to begin on January 26, 2025, to ensure a stable power supply amid a looming shortfall.
The power deal comes after the cessation of a 2019 Power Supply Agreement (PSA) between MERALCO and ACEN Corporation, which resulted in a deficit in baseload capacity.
With demand expected to rise during the summer months, MERALCO sought an alternative power source to prevent potential disruptions.
“Thus, in the best interest of its customers, MERALCO was constrained to find a contingency and consider an alternative source of supply through a negotiated procurement of an EPSA for MERALCO’s 200 MW baseload supply requirement,” the Energy Regulatory Commission (ERC) stated.
MERALCO initiated a procurement process and received proposals from six power suppliers: Mariveles Power Generation Corporation (MPGC), Sual Power Inc. (SPI), Southwest Luzon Power Generation Corporation (SLPGC), First NatGas Power Corporation (FNPC), Therma South Inc. (TSI), and South Luzon Thermal Energy Corporation (SLTEC).
After evaluating the offers, Sual Power Inc. (SPI) emerged as the lowest bidder, securing the contract. Under the agreement, the EPSA will run from January 26, 2025, to January 25, 2026, with a contract price of Php 5.0500 per kilowatt-hour (kWh) at the plant gate, exclusive of VAT, and an additional Php 0.1000 per kWh for line rental.
The 200-MW contract capacity is expected to help stabilize the power supply in Meralco’s franchise area, particularly as peak demand rises during the summer season.
With energy security being a priority, MERALCO continues to assess its long-term procurement strategy while ensuring sufficient power supply for its consumers.
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