August 25, 2025 | 12:00am
MANILA, Philippines — Pangilinan-led Manila Electrical Co. (Meralco) and Aboitiz-backed GNPower Dinginin Ltd. Co. (GNPD) have secured regulatory approval for his or her 100-megawatt (MW) energy provide deal.
The Power Regulatory Fee (ERC) has granted interim reduction to the businesses, successfully permitting them to proceed with their 15-year energy provide settlement (PSA) beginning Aug. 26.
“The fee finds advantage and necessity to permit the events to implement their PSA pending the issuance of the ultimate resolution on this case,” the ERC acknowledged in an order dated Aug. 22.
For this PSA, the regulator licensed an relevant capability charge of P17,228.88 per kilowatt-year. That is equal to round P1.9668 per kW-hour, excluding different expenses similar to gas prices.
In granting interim reduction to Meralco and GNPD, the ERC thought-about a number of elements, together with compliance with the aggressive choice course of (CSP), the supply-demand situation, the bid value and the PSA charge.
In keeping with the fee, the proposed charges within the topic PSA have been actually decrease than these of different Meralco suppliers using coal and pure fuel as gas.
In September final 12 months, Meralco and GNPD filed a joint utility searching for ERC approval for the ensuing PSA of a 600-MW baseload CSP, wherein the latter was awarded 100 MW.
GNPD, which owns and operates a 1,336-MW coal-fired energy plant in Bataan, received the provision deal after submitting a proposal of P5.7392 per kWh.
Of their utility, the events famous that the PSA might end in round P1.81 billion in value financial savings to Meralco prospects, in comparison with sourcing the identical capability from the spot market.
As a extremely regulated entity, Meralco is required to conduct aggressive bidding for its energy provide procurement, in accordance with the principles set by the ERC and the Division of Power.
