Meralco seals supply deals to meet rise in demand

MANILA, Philippines—Manila Electric Co., the country’s biggest distribution utility, has signed electricity supply agreements with three power-generation companies to enable it to meet an expected surge in power demand this summer.

The signing of the interim power supply agreements, which will provide up to 204 megawatts in additional capacity, will also help ease Meralco’s exposure to the wholesale electricity spot market (WESM) from April 1 to June 30 this year, the distributor said in a disclosure to the Philippine Stock Exchange (PSE) on Wednesday.

According to Meralco, it signed separate interim agreements with Toledo Power Co. for the supply of up to 28 megawatts (MW), with an option for an additional 9 MW, and with Panay Power Corp., which will provide 27 MW to the power distributor.

Meralco also reported that it executed a similar agreement with 1590 Energy Corp. for the purchase of up to 140 MW in capacity and associated energy output from the latter’s 225-MW Bauang Power Plant in La Union.

All agreements, which will expire on June 30 this year unless terminated earlier or extended, will take effect once approved by the Energy Regulatory Commission.—Amy R. Remo