The Energy Regulatory Commission has approved the power supply contracts entered into by San Miguel Energy Corp., Energy Development Corp. and Manila Electric Co. (Meralco).
In separate orders, the ERC granted provisional approval for the power supply contract between Meralco and South Premiere Power Corp. and that between EDC subsidiary Green Core Geothermal Inc. and Leyte II Electric Cooperative Inc.
San Miguel Energy was, meanwhile, allowed to continue implementing its energy supply contract with Tarlac II Electric Cooperative Inc. (Tarelco II), which was covered by a provisional approval granted by the ERC in October last year.
The ERC said it had given provisional approvals to Meralco and Green Core as the initial evaluation of their applications showed that the power supply contracts entered into would “redound to the benefit of the consumers in terms of continuous, reliable, efficient and affordable power supply as mandated by the Electric Power Industry Reform Act (Epira).”
The power to be supplied by SPPC to Meralco will be solely for the power requirements of the locators at the Cavite Economic Zone (CEZ). The contract between Meralco and SPPC is on a take-or-pay basis, effective for only three months, at a basic generation rate of P3.9429 per kWh.
“National Power Corp. has no more capacity to be able to serve the requirements of Cavite Economic Zone. (There is) urgent and paramount necessity to provide power to avert any disruption in the operations of its locators, which could severely impact on the economic and social development of the country,” the parties said in their application.
SPPC is currently engaged in the generation and administration of the energy output of the 1,200-megawatt Ilijan natural gas power plant in Batangas.