Latest Stories

Meralco seeks to extend contract with Napocor


Manila Electric Co., the country’s biggest power distributor, is seeking to extend by another six months its existing transition supply contract (TSC) with state-run National Power Corp. to secure adequate power supply in its franchise area.

Alfredo S. Panlilio, SVP for customer retail services of Meralco, explained that while the power utility firm had already secured some 4,800 megawatts of electricity supply from various power generation firms, it would still need about 200 MW from Napocor over the next six months, or up to the time when the open access and retail competition scheme would commence.

Under the open access regime, large power users that consume 1 MW or more each month will be able to choose their own electricity suppliers, unlike in the current setup where they are limited to the supplier that has jurisdiction over their respective areas.

The transition supply contract with Napocor will expire on Dec. 25 this year. If the parties will be able to agree on the proposed extension, the contract will expire on June 25, 2013.

“We’re trying to extend the TSC to lessen our exposure to the [wholesale electricity spot market],” he added.

Panlilio assured Meralco’s estimated 5 million customers that the contract extension would entail no additional cost to Napocor and state-run Power Sector Assets and Liabilities Management Corp. (PSALM) as the extended contract would have the same terms as the existing one.

Meralco earlier said that its new power supply agreements would enable it to reduce the generation charge—the largest component of a power bill—by an average of 18 centavos per kilowatt-hour starting 2013.

The new power supply agreements, together with Meralco’s other bilateral contracts, account for about 95 percent of the requirements of Meralco customers in 2013. The remaining 5 percent will have to be sourced from WESM.

It is expected that the average blended power rates from both Meralco’s existing and new power supply contracts are expected to reach P5 a kilowatt-hour (kWh) next year and in 2014; P5.04 per kWh in 2015; P5.07 per kWH in 2016; P5.08 per kWh in 2017; P5.10 per kWh in 2018; and P5.13 per kWh in 2019.

The rates are still much lower than the P5.65-per-kWh offered under the company’s existing transition supply contracts with Napocor.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , contracts , Meralco , napocor

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • ‘I’ll make it,’ says young ferry passenger to family
  • Bad weather halts rescue after deadliest Everest disaster
  • Gigi Reyes has no other option but to turn state witness — Santiago
  • US weighing military exercises in Eastern Europe
  • Rains loom in Surigao as LPA nears
  • Sports

  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Warriors beat Clippers in playoff opener
  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Lifestyle

  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Joe de Venecia visits the Queen Mother of Cambodia
  • Fashionistas flock to designer’s wedding
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • Marketplace