San Miguel Corp. (SMC) on Sunday said its power unit, San Miguel Global Power (SMGP), has offered to Meralco the use of its Ilijan Natural Gas for a fraction of the cost to help keep electricity prices low, as well as to ensure the steady supply of power.
In a statement, SMC President Ramon Ang said it is offering the use of 1,200 megawatts capacity of the plant for a minimal P1 per kilowatt hour in capital recovery fee, or half of its capital cost on the facility.
This meant that by using the plant, which historically accounted for 10 to 12 percent of Luzon's net dependable capacity, incremental power supply costs for households may be cut down compared to prevailing costs from coal power generation.
Ang also said SMGP, through its subsidiary, South Premiere Power Corp. (SPPC), has already discussed the matter with Meralco.
“As we have said in the past, we will continue to look for ways to help make sure consumers will still have some protection from the effects of skyrocketing global fuel prices. This is one of the best and most direct ways we can show solidarity with our people in this time of crisis,” said Ang.
The Ilijan facility is currently on extended outage.
The original gas supply agreement of the plant with Malampaya expired last June 2022.
Ang said SMC is also offering to help source fuel for the Ilijan facility, which Meralco will pay for.
He also said utilizing the said facility will help ease power supply woes in Luzon.