ERC sets lower rate for Meralco-TMO supply deal

by Myrna Velasco, 16 June 2015
from Manila Bulletin

n account of higher capacity dispatch, the controversial power supply agreement (PSA) between Manila Electric Company (Meralco) and Therma Mobile Inc. (TMO) of the Aboitiz Group had been prescribed an interim lower rate of P9.3964 per kilowatt hour (kWh) as referenced on the plant’s capacity delivery for April 2015.

The Energy Regulatory Commission (ERC) has specified that the provisionally approved rate in the parties’ modified supply deal had been lower by P0.8394 per kWh as compared to their original PSA.

The regulatory body has further explained that such was in view of “the higher dispatch that Meralco can avail under the amendment agreement compared to the original PSA that caps the dispatch at 25-percent.”

Once a final approval is bestowed on that rate level, the ERC has specified that the impact of the amendment agreement to Meralco’s blended generation charge “will be a decrease of about P0.0538 per kWh.”

The contract duration had been set for three (3) years and nine (9) months or from September 27, 2013 until June 25, 2017, unless terminated prior or extended by the parties.

The TMO bunker-C fired diesel plant is of 242.2-megawatt capacity and is considered an embedded facility to Meralco’s distribution system via the Malabon-Grace Park 115-kilovolt line.

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