ERC approves Meralco's purchase of 290 MW from SPPC

The Energy Regulatory Commission (ERC) has approved Manila Electric Co.'s (Meralco) purchase of the remaining 290 megawatts under its 1,200-megawatt power supply contract with San Miguel Group's South Premiere Power Corp. (SPPC).

This approval follows last year’s rate and conditions, with an annual capacity fee of approximately P10,620 per kilowatt-year and an O&M fee of P3,200/kW-year.

The ERC deferred its decision on Meralco and SPPC's request for interim relief and confidential treatment of information due to pending issues that require further deliberation.

Previously, the ERC granted provisional authority for a 910-megawatt supply deal between Meralco and SMC's Ilijan natural gas plant at a base rate of P5.9282 per kilowatt-hour.

Meralco stated last November that this agreement saved around eight million customers approximately P10.7 billion in higher summer electricity bills.

The ERC also noted that the 290 MW was integrated into the 910-MW supply for Meralco under a power supply agreement between SPPC and SPI, a subsidiary of San Miguel Group.