SMC offers Meralco use of natural gas power plant to help stabilize power supply
MANILA, Philippines — San Miguel Global Power (SMGP), the power arm of San Miguel Corporation (SMC) has offered Manila Electric Co. (Meralco) use of its natural gas power plant in Ilijan, Batangas City, at minimal tariff to help stabilize power supply and keep electricity prices as low as possible.
In a statement, SMC president Ramon S. Ang said it will only cost Meralco P1 kilowatt per hour (kwh) to make use of the Ilijan natural gas power plant.
“Essentially, this will mean that the incremental power supply costs from such capacity for households may be cut down significantly compared to prevailing costs from coal power generation,” Ang said in a statement.
Ang said SMGP, through its subsidiary South Premiere Power Corp. (SPPC), has already had initial discussions with Meralco, as both firms are committed to help consumers weather rising commodity prices, including that of power.
“As we have said in the past, we will continue to look for ways to help make sure consumers will still have some protection from the effects of skyrocketing global fuel prices. This is one of the best and most direct ways we can show solidarity with our people in this time of crisis,” said Ang.
Ang added that in order to help address fuel constraints, SMGP is also offering to help source the fuel for the Ilijan facility —whether from its own allocation of Malampaya gas or liquid fuel — which Meralco will pay for.
Ang also said SMGP is open to working with Meralco to utilize its 70 PJ of banked gas that it purchased from the Philippine National Oil Company for a price significantly less than the going rate for coal power generation.
Ang said this would help provide Meralco “the flexibility to manage its overall power generation costs, and ensure adequate power supply.”
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