3 weeks ago
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Manuel V. Pangilinan-led Manila Electric Company (Meralco) reported that the emergency power supply agreement (EPSA), which secures backup electricity for potential supply interruptions, is set to conclude in 2026.
In a briefing, Jose Ronald Valles, Meralco senior vice president and head of regulatory affairs, explained that the EPSA was executed last Jan. 26, after evaluating offers from six power suppliers.
Sual Power Inc. (SPI) emerged as the winning bidder with the lowest offer, stating that its bid has been indicated in the contract price.
“The contract price is 5.05 per kWh [kilowatt-hour] plus the 10-centavo line rental cap. The term of the contract is Jan. 26, 2025, until Jan. 25, 2026,” he said.
The other suppliers who presented their bid included Mariveles Power Generation Corp. (MPGC), Southwest Luzon Power Generation Corp. (SLPGC), First NatGas Power Corporation (FNPC), Therma South Inc. (TSI), and South Luzon Thermal Energy Corporation (SLTEC).
Valles also explained that the EPSA was already set in motion due to urgency. However, Meralco is currently in its pre-filing process with the Energy Regulatory Commission (ERC) for formal approval.
Currently, the contract capacity is 200 megawatts (MW), with a guaranteed supply without outage allowance.
The EPSA contract ensures a stable power supply during emergencies, such as power plant outages, natural disasters, and grid failures, which is particularly important in 2025, an election year.
“Considering the resulting deficit of baseload capacity, and approaching peak demand dung summer months, Meralco notified the ERC of its need to enter into an EPSA, while it revisits its power supply procurement plan to determine the need to conduct CSP [competitive selection process] for the remaining term of the terminated PSA [power supply agreement],” Valles elaborated.
Previously, Ayala-led ACEN Corporation discontinued its supply of the 200 MW PSA with Meralco, as Valles stated that “the [ceased] baseload capacity PSA was signed last Sept. 30, 2019.”
