ABOITIZ OPEN TO LONGER TERM SUPPLY DEAL WITH MERALCO
Aboitiz Power Corp., the Aboitiz Group’s listed power business, expressed its willingness to supply electricity to Manila Electric Co. (Meralco) even beyond the end of its short-term contract with the power distributor.
“It really depends on whether we can source the right fuel,” said AboitizPower president and CEO Emmanuel Rubio. “We’re still looking for fuel supply that will allow us to go beyond that or make an offer beyond that. So far, we’re still evaluating it.”
On Thursday, Meralco inked an emergency power supply agreement (EPSA) with GNPower Dinginin Ltd., a partnership among the Aboitiz and Ayala groups and Power Partners Ltd. Co., for 300 megawatts of baseload or uninterrupted supply.
The EPSA, being offered for P5.96 per kilowatt-hour, would end on Jan. 25, 2023.
When asked why the agreement was a short one, Rubio said the length of EPSA was the same as the 60-day temporary restraining order issued by the Court of Appeals.
The CA issued the said TRO in favor of South Premiere Power Corp. (SPPC), a subsidiary of San Miguel Corp. through its power unit SMC Global Power Holdings Corp. which in effect suspended the power supply agreement between Meralco and SPPC forged in 2019.
“I think that also gives anyone, everyone who will be interested to look for source of fuel that will be able to meet the demand of Meralco,” said Rubio.
For consumer group Power for People Coalition (P4P), the interim deal of Meralco and GNPower Dinginin “is no savior to consumers.”
“Without the benefit of a CSP (competitive selection process), consumers had no opportunity to engage in the bidding process to vie for terms that are the least expensive,” said P4P convener Gerry Arances in a statement.
“This unfortunately puts straight energy pricing arrangement out of the picture which has shielded power consumers from high electricity prices. Consumers are forced to buy more electricity from coal at a time of volatile prices, which would see no end soon,” added Arances.
The group also said when the Department of Energy allowed Meralco to procure an emergency power supply without going through a competitive bidding, consumers were “essentially stripped consumers of safeguards against abusive electricity charges.”