ERC to study Ilijan plant’s offer to Meralco

By Alena Mae S. Flores – December 13, 2022, 6:55 pm
from manilastandard.net

Energy Regulatory Commission chairperson Monalisa Dimalanta welcomed on Tuesday moves to re-power the 1,200-megawatt Ilijan natural gas plant in Batangas to help ease supply during the dry months.

“For the supply aspect, it’s good, especially as we enter the summer months. But we need to make sure that the 1,200 MW capacity is there to add to the security of the system,” Dimalanta said.

She said ERC has yet to receive any submission from power retailer Manila Electric Co. and SMC Global Power Holdings Corp. on the proposed Ilijan power supply offer.

SMCGP announced it is making the entire capacity of its Ilijan plant available to Meralco for a fraction of its capital cost.

“The offer is complicated…What we see is the P1.30 offer. We need to know what else is in there because we need to determine…it’s not fixed because the fuel component will move. We need to determine the impact of this to consumers,” Dimalanta said.

She said they could not dictate arrangements to be made by Meralco and SMCGP but the rates should be cheaper.

“The principle is it should be cheaper than the contracts…We need to know the arrangement on fuel because fuel is pass-through,” Dimalanta said.

Meanwhile, Dimalanta said Meralco consumers must brace for higher electricity rates next month.

“In general, its [rates] been going up. We need to check the pass-on charges. For January, Meralco consumers should brace themselves for higher rates, especially since the refund would end,” she said.

SMCGP said its offer to Meralco would help keep electricity prices as low as possible for consumers while ensuring a steady power supply in the coming months.

The company said the cost to Meralco is a minimal P1 per kilowatt-hour in capital recovery fee or half of its capital cost on the facility.

Meralco is negotiating with First Gen Corp. to utilize its Malampaya gas allocation to fuel the Ilijan power plant, thus ensuring its availability during the dry months.