Bilyonaryo - Business

Meralco looking to tap First Gen’s Malampaya allocation for SMC Ilijan offer

December 6, 2022

Bilyonaryo.com

Bilyonaryo Manuel V. Pangilinan’s Manila Electric Co. (Meralco) is seeking the help of the Lopez family’s First Gen Corp. for the use of the Ilijan power plant which Ramon S. Ang-led San Miguel Corp. is offering the power distributor at a minimal capital recovery fee.

ALSO READ: Brace for higher energy bills as SMC pulls plug on supply deal with Meralco

Jose Ronald Valles, Meralco first vice president and head of regulatory management, said it would discuss with First Gen the possibility of using the latter’s natural gas allocation from Malampaya to fuel into operations SMC’s 1,200-megawatt Ilijan gas-fired plant.

Valles said Meralco would be in charge of fuel procurement under SMC’s proposed deal for the use of the Ilijan plant.

“So i-didivert mo yung fuel ng First Gas, ililipat mo kay Ilijan for Ilijan to run on the gas using natural gas and for the First Gas plants to run on liquid fuel,” Valles said.

“We will talk to First Gen about it and then once we arrive at an agreement, then we need to go to the Department of Energy (DOE) first to get their approval and if there’s blessing from the DOE, then that’s the time we go to the Energy Regulatory Commission (ERC). We don’t want to go to the ERC if the DOE will not bless it,” he added.

Valles said the company is hoping to have a written agreement executed within a week.

“Ang objective namin is we want to be able to add that 1,200 MW back to the grid. Kasi nawala yung 1,200 MW ng Ilijan nung nawala sila when that contract with the government expired. So sana bumalik yun para hindi tayo magkaroon ng shortage ng supply sa summer,” the Meralco official said.

“So we’re doing everything possible to mitigate the impact of the temporary restraining order as well as the impact of any increases that will be brought about by the price offers of the different generators under the other emergency power supply agreements,” he added.

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