Meralco sees 25% of sales from open access scheme

MANILA, Philippines –  Power utility giant Manila Electric Co. (Meralco) is projecting to generate at least 25 percent of its sales through the open access scheme.

Meralco’s head of utility economics Larry Fernandez told reporters the company expects about a fourth of its 575 industrial and commercial customers to participate in open access, which is part of the restructuring of the power industry as prescribed under RA 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001.

Under this scheme, bulk power users will be given the choice where to source their electricity needs.

As of the latest estimate, Meralco’s electricity sales reached about P250 billion last year.

Fernandez said Meralco is now preparing for the start of open access which is expected within the year if the Power Sector Assets and Liabilities Management Corp. (PSALM) would be able to complete the 70 percent required level of privatization for the contracted capacity of the National Power Corp. (Napocor).

In addition, PSALM has to sell 70 percent of the generating assets of Napocor, which it has already breached as it has sold most of the generating assets of the state-owned power firm.

Fernandez said Meralco would also be forming its own power supplier to be able to compete in an open access regime.

“Our desire is that they will get supply from our retail electricity supplier,” he said.

He added the company would be putting up much-needed infrastructure, such as information systems, to support its operations once open access starts.

Earlier, the company announced it may allot some $2 billion to build power plants with a total capacity of about 1,500 megawatts. This move, the company said, would ensure a steady and reliable supply of power for customers.

Meralco president and chief executive officer Manuel V. Pangilinan earlier said they would be setting up a separate subsidiary, Meralco Power Generation Co., to handle Meralco’s power generation business.

Based on existing rules, distribution utilities may put up their own power plants provided they do not exceed 50 percent of their supply requirements.