Meralco urged not to cut off Millennium Energy from distribution system

by Lenie LecturaMay 26, 2016

from Business Mirror

THE Manila Electric Co. (Meralco) was directed not to disconnect Millennium Energy Inc. (MEI) from the utility firm’s distribution system.

Chairman Jose Vicente B. Salazar of the Energy Regulatory Commission (ERC), in  a text message, said the commission acted on MEI’s application relief during an en banc meeting last Tuesday.

“The resolution by the commission is aimed at ensuring reliability and adequacy of supply in the Luzon grid,” Salazar said.

Meralco was ordered to allow MEI’s 100-megawatt power plant to export its energy utilizing Meralco’s system, pending resolution of the dispute resolution case filed by MEI, the ERC official said.

“Moreover, for purposes of the distribution wheeling charges, the commission decided Meralco shall not impose a guaranteed minimum billing demand on MEI, in the interim, but shall only bill based on the actual use of dispatch of the MEI plant subject to ERC-approved  distribution wheeling charges,” Salazar said.

Just recently, the Philippine Electricity Market Corp. (PEMC) said MEI was deregistered in the Wholesale Electricity Spot Market (WESM) effective April 1.

PEMC is the WESM operator.

MEI sought for the termination of its WESM membership following the nonrenewal of the distribution wheeling service agreement (DWSA) with Meralco.

The DWSA was terminated because MEI has been incurring losses due to high charges.

Meralco said then it offered an amicable settlement. However, MEI still refused to pay.