MERALCO, San Miguel seek ERC approval of power contracts

The Manila Electric Company (MERALCO) and two power firms under San Miguel Corporation are seeking approval from the Energy Regulatory Commission (ERC) for the implementation of their power supply agreements (PSAs).

Based on a BusinessMirror report, MERALCO, together with Excellent Energy Resources Inc. (EERI) and Masinloc Power Partners Co. Ltd. (MPPCL), pointed out to the ERC that consumers would save Php20.9 billion should the contracts be allowed their implementation.

Last month, San Miguel bagged two PSAs worth 1,800 megawatts (MW) from MERALCO after offering the “best” bids in the power giant’s competitive selection process. 

EERI would supply 1,200MW from its liquefied natural gas (LNG) power plant in Ilijan, Batangas City for Php4.1462 per kilowatt hour (kWh). The company will specifically build, manage, and maintain three units, each with a capacity of 425.7MW.

MPPCL, meanwhile, would provide the remaining 600MW from its coal project in Zambales for Php4.2605/kWh. 

If approved, the PSAs are scheduled to take effect in 2024.