MANILA, Philippines - 1590 Energy Corp. (1590EC), one of the power generating units of listed Vivant Corp., signed Tuesday a one-year power supply agreement (PSA) with Meralco.
In a statement, 1590EC said the PSA covers 170 MW of firm contract capacity from Feb. 26 to July 25, and 170MW non-firm contract capacity from July 26 to Feb. 25, 2017.
The PSA will be implemented upon securing ERC’s provisional approval and shall have a term of one-year, which shall be automatically extended for a period of another year, unless earlier terminated by the parties, the company said.
The PSA was concluded after the Swiss Challenge conducted by Meralco in compliance with government’s mandate to conduct competitive selection process (CSP) in the procurement of its power requirements.
Last month, 1590EC submitted a proposal to Meralco for the supply of 170MW for peaking power in the summer months of 2016 from trading intervals 1000H to 2100H (peak hours) from Mondays to Saturdays, excluding holidays.
Meralco published two invitations for price challenge and invited other power generation firms to submit better tariff proposals. But since the power utility did not receive counteroffers until the last day of the challenge period on Jan. 12, the PSA was awarded to 1590EC.
Based in Bauang, La Union, 1590ECoperates and manages the energy output of its 215 MW Bauang bunker oil-fired diesel engine power plant.