Meralco seeks P12.38 M for excess MMPC supply

MANILA, Philippines - Manila Electric Co. (Meralco) is seeking regulatory clearance to charge P12.38 million from its customers to compensate Montalban Methane Power Corp. (MMPC) for the excess capacity it injected to the distribution system beyond agreed supply contract.

In a joint filing with the Energy Regulatory Commission (ERC), Meralco and MMPC sought approval for an additional P0.005 per kilowatt-hour (kwh) to consumers for one month to recover P12.38 million.

As directed by the ERC in July last year, Meralco and MMPC signed a memorandum of agreement (MOA) to cover the payment for the energy generated and injected by MMPC to the distribution system of Meralco  from Jan. 26 to June 15, 2015.

Meralco proposed the said amount would be remitted to MMPC as compensation for the 2.65 million kwh delivered by the power generator, which was beyond the contract for the supply of electricity (CSE) between the two parties.

Under Republic Act 9136, or the Electric Power Industry Reform Act (EPIRA), the payment for the energy generated and injected by MMPC to the distribution system of Meralco is a pass-through charge. 

“The parties believe that a one-month period of recovery is reasonable as the amount to be recovered is only minimal, thus, it has negligible impact to the customers,” Meralco and MMPC said.

Both parties entered into the CSE in April 3, 2009 until Jan. 26, 2015, which was terminated after MMPC decided to register in the Wholesale Electricity Spot Market (WESM) and participate in the feed-in tariff (FIT) scheme.

“However, despite the termination of the CSE, MMPC was still able to generate and inject energy to the distribution system of Meralco,” the petition read.

MMPC owns a power plant powered by the methane-extracted from the Montalban Landfill, located in Rizal. 

Meanwhile, Meralco distributes electricity to over 5.7 million customers in its franchise area which includes Metro Manila, Bulacan, Cavite, Rizal and certain parts of Batangas, Laguna, Quezon and Pampanga.