Meralco to collect P12.38 million from customers to pay debt to Montalban Methane Power

by Lenie LecturaJune 23, 2016

from Business Mirror

THE Manila Electric Co. (Meralco) wants to collect from its customers P12.38 million and remit this to Montalban Methane Power Corp. (MMPC).

The amount represents the power supplied by MMPC to Meralco between January 26, 2015, when the contract for the sale of electricity between the two was terminated, and June 15, 2015, the date of effectivity of the feed-in tariff certificate of compliance of MMPC.

In its eight-page joint application, both asked the Energy Regulatory Commission (ERC) to approve their memorandum of agreement (MOA), which covers the payment for the energy generated and injected by MMPC to the distribution system of Meralco during the period.

The application also seeks approval to allow Meralco to collect from its customers an amount of P12,381,627.20, at the rate of P0.005 per kilowatt hour (kWh), for one month. “The parties believe a one-month period of recovery is reasonable as the amount to be recovered is only minimal, thus, it has negligible impact to its customers,” they said.

MMPC owns and operates the Montalban Methane Power Plant, which is powered by the methane extracted from the Montalban landfill in Rizal.

The two entered into a contract for the supply of electricity in 2009. Six years later, they agreed to terminate the contract effective January 26, 2015. However, despite the termination of the contract, MMPC was still able to generate and deliver power to Meralco.

They sought the ERC’s intervention. The ERC then ordered Meralco and MMPC to discuss and agree on the possible mechanism for the compensation of unpaid dispatched power generation.

The ERC said this compensation will be paid on a collect-and-remit basis, subject to its approval. Thus, pursuant to this directive, both inked a MOA.