Power utility giant Manila Electric Co. is now sourcing the more expensive power supply from the electricity spot market which ranges from P7 to P9 per kilowatthour compared to the P4.30 per KWh rate of San Miguel Corp. under their 2019 power supply agreement (PSA).
“We confirm receipt of the notice of cessation of supply from SMC Global Power, covering our 670 MW power supply agreement with South Premiere Power Corporation which was the subject of the recent 60-day temporary restraining order (TRO) issued by the Court of Appeals,” Meralco said.
The country’s largest power distributor said it is sourcing the supply covered by the PSA from the Wholesale Electricity Spot Market (WESM).
“However, we are still negotiating with other generation companies to secure the 670 MW supply and shield our customers against volatile and potentially higher WESM prices,” it said.
“Our priority is to ensure continuity of stable, reliable, and adequate supply for all our customers. We are exhausting all efforts to mitigate any impact of these developments on our customers’ electric bills,” Meralco said.