Meralco eyes rebidding supply deal scrapped by SMC

Manila Electric Co. (Meralco) is looking to rebid a 1,800-megawatt supply contract after San Miguel Corp. (SMC) withdrew its supply deals aimed to provide electricity by 2024 and 2025.

“We confirm receipt of notices from San Miguel Global Power and are currently studying our available options, including the possibility of requesting DOE (Department of Energy) approval to conduct another round of CSP (competitive selection process) for the 1,800-MW requirement of Meralco starting 2024,” Meralco said in a statement yesterday.

It was referring to the two 20-year supply contracts signed with SMC units Excellent Energy Resources Inc. (EERI) and Masinloc Power Partners Co. Ltd. (MPPCL) back in 2021.

EERI was supposed to provide 1,200 MW from a natural gas-fired power plant with an all-in headline rate of P4.7450 per kilowatt hour and computed all-in levelized cost of electricity of P4.8849 per kWh by Nov. 26, 2024.

Meanwhile, MMPCL will supply 600 MW from a coal-fired power plant at all-in headline rate of P4.6314 per kWh and computed all-in LCOE of P4.9299 per kWh no later than April 26, 2025.

When the contracts were secured after a CSP, Meralco said its customers were seen to save around P20.93 billion over the 20-year period of the supply contract.

Meralco said it will make appropriate disclosures on the matter.

Earlier, South Premiere Power Corp. – another SMC unit – officially ceased supplying Meralco under its 2019 Power Supply Agreement on Dec. 7, forcing Meralco to start sourcing additional 670 MW from the electricity spot market.