The Manila Electric Co. (MERALCO) has signed an emergency power supply agreement (EPSA), this time with South Premiere Power Corporation (SPPC) for the 300 megawatts (MW) baseload capacity.
The EPSA covers the dates of March 26 to March 25, 2024. The signed deal followed the Department of Energy’s (DOE) certification exempting the supply agreement from a competitive selection process.
The deal includes a two-part tariff composed of a Php 1.75 per kilowatt-hour (kWh) fixed cost and variable cost indexed on fuel price movement.
The new EPSA partially replaces MERALCO’s 2019 PSA with SPPC – which was subject to a Writ of Preliminary Injunction by the Court of Appeals
MERALCO first signed emergency PSAs with Aboitiz-led GNPower Dinginin Ltd. on the 300-MW supply. The second EPSA had a rate of Php 8.5250/kWh.
In related developments, MERALCO is also securing DOE’s approval for another EPSA, a 180-MW baseload capacity requirement to boost available supply and address the reduced capacity of the natural gas-fired power plant affected by the restriction of Malampaya gas supply.
The 180 MW supply was initially subject to two rounds of CSP – both of which failed due to the lack of bidders. With the urgency for additional supply for the dry season, MERALCO sought to execute an EPSA instead.