THE Energy Regulatory Commission (ERC) has granted Manila Electric Co. (Meralco) and First NatGas Power Corp. (FNPC) the authority to implement their power supply agreement (PSA) in an “interim relief” that sets certain conditions.
“In the event that the final rate is higher than that granted in the interim, the resulting additional charges shall be collected by FNPC from MERALCO. On the other hand, if the final rate is lower than that granted in the interim, the amount corresponding to the reduction shall be refunded by FNPC to MERALCO,” the ERC said in its order.
In March, Lopez-led First Gen Corp. said its unit had entered into a power supply contract with distribution utility Meralco for the sale and purchase of around 414-megawatts (MW) of baseload capacity.
With the PSA, First Gen said Meralco had secured “competitively priced” baseload electricity, or steady 24/7 power, since its plant’s all-in tariff at an 80% capacity factor is P3.77 per kilowatt-hour.
The power will be sourced from FNPC’s already constructed and currently operational San Gabriel combined cycle natural gas-fired power plant within the First Gen Clean Energy Complex in Batangas City.
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