Bilyonaryo Ramon S. Ang-led San Miguel Corp. (SMC) is extending the use of its Ilijan power plant at minimal tariff to Manila Electric Co. (Meralco) to appease concerns of supply constraints and rising energy bills.
SMC, through power unit San Miguel Global Power (SMGP), has offered to make the full 1,200-megawatt capacity of its Ilijan natural gas plant available to Meralco “for a fraction of its capital cost to help keep electricity prices as low as possible for consumers, while ensuring steady supply of power in the coming months.”
Ang, president of SMC, said the offer would only cost Meralco a minimal P1 per kilowatt hour in capital recovery fee, or half of its capital cost on the facility.
He said 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.
SMGP has also expressed its willingness to work with Meralco in using its 70 petajoules banked gas acquired from PNOC at a cost much lower than the prevailing cost of coal power generation.
Ang said this would give Meralco the flexibility to manage its overall power generation costs, and ensure adequate power supply.
The Ilijan facility is currently on extended outage, with the original gas supply agreement with Malampaya expiring last June.
Repair works on the power plant are also being undertaken to improve its fuel efficiency and generation ramp rate.
“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,” Ang said.
He said both SCGP and Meralco are committed to help consumers weather rising commodity prices, including that of power.
“Because of unforeseen global events such as the Russia-Ukraine war, fuel prices are at unprecedented highs, and supply is tight. We are in a crisis and this is a shared burden by all Filipinos—power consumers, the power sector, government,” Ang said.
“By immediately foregoing returns, we continue to carry our share of the burden, while getting just enough to make sure plant operations continue and remain sustainable,” he added.
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