Meralco wants Psalm supply deal extended until June
MANILA - Power retailer Manila Electric Co. (Meralco) has asked the Power Sector Assets and Liabilities Management Corp. (Psalm) to extend until June this year its supply contract.
The contract will lapse on February 26 after Psalm granted a two-month extension from December 26. Meralco originally asked for a six-month extension but PSALM only approved two months.
“We’ve requested for further extension to June 25 or up to the turnover of Angat,” Meralco President and Chief Executive Officer Oscar Reyes said.
Psalm originally planned to turn over the 218-megawatt Angat hydropower plant in Bulacan to its new owner, Korea Water Resources Development Corp. (K-Water), by February. It is expected that once this happens Meralco could start negotiating for additional power with K-Water. However, Psalm has yet to make an announcement on this.
“We’re working for an extension with Psalm...This request is going to be beneficial to over 5 million households and industrial and commercial customers who will be less exposed to Wholesale Electricity Spot Market [Wesm] during higher price summer months. At the same time, it’s a win-win-win for everyone, because it benefits Psalm and the [National Power Corp.],” Reyes explained.
Meralco, he added, expects Psalm will grant its request. “We believe it is definitely good for the consumers and we think it will also be to Psalm’s benefit. The objective is to try to limit the potential sourcing from Wesm.”
Wesm is the Philippine spot market for the trading of electricity as a commodity.