Meralco, PEDC seek nod for PSA
BY LENIE LECTURA – JANUARY 26, 2022
from Business Mirror
The Manila Electric Co. (Meralco) and Panay Energy Development Corp. (PEDC) are seeking regulatory approval to implement their power supply agreement (PSA).
In a 24-page application filed before the Energy Regulatory Commission (ERC), they asked the agency to immediately issue an order granting provisional authority or interim relief to authorize the immediate implementation of the 2021 Meralco-PEDC PSA.
In November last year, Meralco executed a PSA with PEDC for the purchase of 70MW via a competitive selection process (CSP).
PEDC submitted the lowest total headline rate of P2.9906 per kilowatt hour (kWh) and total levelized cost of electricity (LCOE) rate of P2.948 per kWh.
The offer was below the reserve prices of P5.0268 per kWh for the headline rate and P3.7898 per kWh for LCOE rate that were set for the bidding.
PEDC will source power from its coal-fired power plants in Iloilo to supply Meralco’s requirements.
Based on its power situation outlook for 2022 and succeeding years, Meralco foresees a baseload capacity deficit in its portfolio covering 70MW. Thus, in order to ensure continuous and reliable electricity for Meralco customers, there is a need for the distribution utility firm to source additional baseload capacity through bilateral power supply contracts.
“The non-issuance of a provisional authority for implementation of the instant PSA will result in a deficit in Meralco’s PSPP (Power Supply Procurement Plan) by 70MW.
This, coupled with the increased frequency and persistent occurrence of SPEX-Malampaya gas supply restrictions, which is expected to continue to result in the de-rating of gas-fired power plants, and the anticipated thinning electricity operating margins leading up to the May 2022 elections, especially with upcoming simultaneous scheduled maintenance and possible forced outages of power plants, will ultimately result in the exposure of Meralco’s customers to the highly volatile prices of the WESM,” it said.
Meanwhile, Meralco said 43 linemen and engineers who were on duty for a month during Super Typhoon Odette are finally back home.
“Today, electricity service has been restored in more communities in Cebu City and Bohol as hundreds of poles have been erected and vital lines have been reconnected in these areas. Thanks to the bayanihan of so many stakeholders including one of our partners, 2Go, our kababayans severely affected by the typhoon are now recovering,” One Meralco Foundation (OMF) President Jeffrey Tarayao said.
“I would like to express gratitude to 2Go and its team for helping us bring our trucks and other vehicles needed to support the power restoration work in Cebu and Bohol,” he added.
