The Manila Electric Co. (Meralco) has secured a critical 200 MW emergency power supply agreement (EPSA) with the coal-fired Sual Power plant in Pangasinan, ensuring stability in its franchise area, particularly in the upcoming hot months. The one-year agreement, effective from 26 January 2025, comes at a price of P5.05 per kilowatt hour (kWh) plus a line rental cap of P0.1 per kWh.
The decision to finalize the EPSA comes after the termination of a 200 MW supply contract with ACEN last November. Despite multiple offers from suppliers, the Sual Power deal was deemed the most favorable that guaranteed uninterrupted power without outage allowance. The agreement follows a projected 900 MW rise in power demand in the first quarter and the hot months of 2025.
The emergency agreement highlights Meralco’s efforts to meet increasing energy demand and safeguard consumers from power shortages, particularly following the expiry of two key contracts. The Energy Regulatory Commission (ERC) has been notified and Meralco is reviewing its power procurement plan to ensure long-term solutions.
The contract’s commercial implications are significant as it stabilizes power availability for millions of consumers in the region, ensuring consistent service amid rising demand and market volatility.
