MANILA, Philippines — San Miguel Global Power (SMGP), the power generation arm of conglomerate San Miguel Corp. (SMC), has come to the aid of debt-saddled Albay Electric Cooperative (Aleco), preventing its disconnection from the grid.
SMGP, through subsidiary Masinloc Power Partners Co. Ltd., owner and operator of the 1,000-megawatt Masinloc power plant, has agreed to supply Aleco’s full power requirements for 12 months, assuring the province of continuous power supply next year.
SMGP said the emergency power supply agreement (EPSA) would enable the cooperative to prevent any further credit concerns with the Independent Electricity Market Operator of the Philippines (IEMOP), which may compromise energy security in its franchise area.
The company said the applicable tariff rate under the power supply deal is competitively priced, based on the prevailing conditions in the fuel commodities markets and the credit standing of Aleco.
In the interest of Aleco consumers, SMGP said it went further by providing consumer protection against fuel price risks by capping its monthly tariff rates to P10 per kilowatt-hour for the first half of the 12-month supply term, while allowing further reduction in the monthly tariff rates for the remainder of the term.
The EPSA is subject to approval of the Energy Regulatory Commission, which will be secured by the parties, with the full support of the National Electrification Administration and Department of Energy.