Meralco to source 670MW from WESM as emergency supply deal with GNPower ends

The Manila Electric Company (Meralco) said Wednesday it would source 670 megawatts of its power requirements from the Wholesale Electricity Spot Market (WESM) after its 30-day emergency supply deal with Aboitiz-led GNPower Dinginin Ltd. expired.

Meralco will secure the 670 MW from WESM starting on Thursday, January 26.

Its power supply agreement (PSA) with San Miguel-led South Premiere Power Corp. (SPPC), which was under a temporary restraining order issued by the Court of Appeals, covered the 670-MW supply.

To partially cover the capacity it lost, Meralco entered into an emergency power supply agreement (EPSA) with GNPower Dinginin for a supply of 300-MW baseload capacity starting December 25, 2022, until January 25, 2023. 

Meralco said that it had asked GNPower Dinginin to extend the EPSA's term.

In a separate statement, AboitizPower confirmed that GNPower’s EPSA with Meralco expired on Wednesday, January 25.

"Under the EPSA, the 300 MW power was derived from the new 1,336MW GNPower Dinginin Plant in Mariveles, Bataan, with a fixed price of P5.95 per kWh," AboitizPower said.

"We remain grateful for the opportunity to contribute to the delivery of a much-needed energy supply covering the Meralco franchise. In the event that Meralco launches another competitive selection process (CSP), where the terms of reference [are] reasonable, AboitizPower will certainly participate," the company said.

Meanwhile, Meralco said it is closely working with the Department of Energy (DOE) and all relevant industry players to ensure adequate supply and protect its customers from volatile and higher WESM prices, which is especially crucial for the anticipated increase in demand during the summer months.

As early as December 2022, the power distributor said it started the Competitive Selection Process (CSP) for additional 480-MW supply targeted to be available starting February of this year. 

"Meralco assures its customers that it exhausts all measures to continue delivering stable and reliable electricity at the least cost under the current circumstances," it said. —VBL, GMA Integrated News