The Manila Electric Co. (Meralco) is compelled to obtain 260 megawatts of relatively more expensive electricity from the Wholesale Electricity Spot Market (WESM) following a series of failed biddings.
A bidding exercise would have yielded a more competitively priced power from lone bidder San Roque Hydropower Inc. but this, unfortunately, failed to materialize as the generator was similarly forced to back out having been unable to generate a significant portion of the target 260 MW peaking contract capacity required by Meralco due to El Niño.
Meralco on Tuesday told reporters it has not received any other offer for the peaking capacity it must have contracted by 25 July this year.
Historically, the price of electricity at the WESM shoots up during the hot months when most power plants go on unscheduled outages due to extreme temperatures.
Jose Ronald Valles, Meralco first vice president and regulatory management head, said that for now, Meralco’s “only available option” for the 260 MW peaking power requirement is the WESM.
Valles said this much power was needed to boost a combined 1,400 MW worth of power agreements that Meralco obtained earlier to ensure the availability of supply in the hot months up ahead.
However, Valles said 400 MW of the requirement obtained from Limay Power Inc. for P6.2708 per kilowatt-hour value-added tax and line rental inclusive has yet to receive provisional authority from the Energy Regulatory Commission (ERC) and for this reason may not yet be dispatched for business and household consumers.
Valles said Meralco is hopeful the ERC soon issues the much-needed authority.
