The Manila Electric Co. (Meralco) has secured another 370-megawatt (MW) power supply contract from Aboitiz Power subsidiary Therma Luzon Inc. (TLI) under an emergency power supply agreement (EPSA).
The company said the contract will last a year and costs P8.14 per kilowatt hour (kWh) beginning 12 April this year.
“Their tariff is below P8 per kWh but if we add replacement power due to 44 days of outage allowance, the rate goes above P8 per kWh,” said Ronald Valles, Meralco first vice president and head of regulatory management office, on Monday.
TLI owns a 700 MW coal-fired power plant in Pagbilao, Quezon.
Meralco has pursued EPSA contracts that will help shield electricity consumers from volatile and potentially higher generation costs at the Wholesale Electricity Spot Market where rates typically rise in the dry months when power demand spikes.
Earlier, Meralco obtained a 300 MW and another 180 MW EPSA with San Miguel Corp.’s South Premiere Power Corp. that will last for a year.
The 300 MW capacity was implemented on 26 March while the 180 MW was on 1 April this year for a price of P8.35 per kWh.
