GNPower Dinginin Ltd. Co. (GNPD) is currently negotiating its third emergency power supply agreement with the Manila Electric Co. (MERALCO), following the expiration of the second contract in February.
GNPD president and CEO Dennis Jordan said that negotiations between them and MERALCO are underway, and they have stopped serving the EPSA which expired last February 25.
This third EPSA being discussed between GNDP and MERALCO is part of the distribution company’s supply portfolio during the summer months. MERALCO noted that it is negotiating for a cheaper price.
The second EPSA, which ran from January 26 to February 25, cost Php 8.5250 per kilowatt-hour. GNDP said that the price included “line rental costs and value-added tax (VAT),” and that it has a “fuel pass-through rate structure.”
While GNPD made an initial offer of the 300-megawatt (MW) fixed rate for a new EPSA, the company said that MERALCO rejected the offer. The distribution company said that the second price offer for a fixed-price contract was rejected as it was higher than the Php 8.5250/kWh agreed upon.
The billing of the second EPSA, however, has yet to be revealed if it’s lower or higher than the mentioned price.
The EPSA partially covers the 670 MW power supply deal MERALCO had with South Premiere Power Corp. (SPPC) before it was subject to a writ of preliminary injunction from the Court of Appeals.
SPPC and MERALCO filed for a power hike rate in their PSA after incurring a Php 15 billion loss amid high global prices and natural gas supply restrictions. This petition, however, was denied by the Energy Regulatory Commission (ERC).
GNPD is a joint venture between Aboitiz Power Corp.’s Therma Power Inc., Ayala Corporation’s AC Energy Holdings Inc., and Power Partners Ltd.
