MANILA — Meralco on Thursday said it has contracted the supply of 300MW of electricity with the Aboitiz-owned GNPower Dinginin plant for a higher price versus its earlier contract, but still lower than the prices on the spot market.
The re-contracted price was for the supply of 300MW from GNPD for up to Feb. 25, 2023, Meralco Regulatory Affairs head Ronald Valles said.
"We have re-contracted the 300MW supply from GNPD for up to Feb. 25, 2023 at a price lower than our WESM (Wholesale Electricity Spot Market) rate forecast for this period," Valles said in a text message.
"The new GNPD rate includes a full fuel pass thru so this is relatively higher than the P5.95 fixed rate that we earlier agreed with them. However, the new rate is still expected to mitigate impact of higher WESM prices for the benefit of our customers," he added.
That means there is pressure for the overall charge to increase since a portion of the supply will be more expensive than the previous one.
Meanwhile, the Court of Appeals issued a writ of preliminary injunction in favor of South Premiere Power Corp. (SPPC) effectively suspending the original power supply agreement between Meralco and the San Miguel-owned power plant.
With this development, Meralco has no choice but to continue purchasing power from the spot market at the rate of P9-P10 per kwh versus the original contract with SPPC of P4.30/kwh.
"With the injunction, the supply of power by SPPC to Meralco at the original rates remains suspended. Hence, Meralco will need to source the replacement power from WESM or other gencos at higher prices which presumably reflect actual fuel prices in the world market today," said Valles.