Meralco extends interim power supply agreement

MANILA, Philippines - Manila Electric Co. (Meralco), the country’s biggest power distributor, has extended the interim power supply agreements it entered into with independent power producers, a ranking official said.

This is on the back of the tight supply situation in the Luzon Grid.

Meralco senior vice-president and head of Customer Retail Services Al Panlilio said that the power distributor extended three agreements until July and October.

“Global Business Power and 1590 extended from July 1 to October 31 2014. Also, Panasia is extended until July 31 2014,” Panlilio said.

Meralco has signed power supply agreements that could provide up to 204 megawatts in much needed additional capacity from April to June 30 as part of efforts to help lessen the company’s exposure to volatile prices at the Wholesale Electricity Spot Market (WESM).

WESM is the country’s trading floor for electricity.

Meralco had signed separate agreements with Global Business Power’s Toledo Power Co.  for up to 28 MW and an option for additional 9 MW and with Panay Power Corp. for up to 27 MW both covering the period April 1 to June 30.

It also signed agreements with 1590 Energy Corp. for up to 140 MW in capacity and associated energy output from its 225-MW Bauang Power Plant in La Union and with PanAsia Energy Inc. for the purchase of up to a maximum capacity of 270 megawatts (MW) from April to June.

Furthermore, Meralco is also supporting Interruptible Load Program (ILP) initiated by the Department of Energy (DOE). Under the ILP, customers with large loads, like commercial establishments, will be asked to operate their own generator sets if the grid operator projects a need to augment generation capacity in the Luzon Grid. Through this, the aggregate demand for power from the system will be reduced to a more manageable level, helping ensure the availability of supply during the season.