Energy gap flagged amid Meralco-Eeri supply agreement setback
The Department of Energy (DOE) has raised concern about Meralco’s 1,200-megawatt (MW) supply deal with Excellent Energy Resources Inc. (Eeri), whose natural gas plant is still grappling with fuel supply issues and commissioning delays.
In a virtual briefing on Monday, DOE Assistant Secretary Mario Marasigan said some units of Eeri were still under testing and commissioning, despite the supply pact demanding the delivery of committed capacity by December 2024.
The completion of the gas storage facility of Linseed Field Power Corp., a unit of infrastructure firm Atlantic, Gulf & Pacific Co., is also experiencing a setback, with its operations pushed back to the end of May.
The gas supply of Linseed is being shared between Eeri and Ilijan power plant, according to Marasigan.
“Even if there is replacement power, that means that the capacity that they will secure to fulfill that 1,200 megawatts will be coming from existing facilities, which should be serving different markets,” Marasigan said, referring to a possible action from Meralco.
“Our concern is that without the fulfillment of the power supply agreements of Meralco and Eeri, then there is a gap,” the official added.
Meralco has yet to issue a statement on the matter.
Under evaluation
The Energy Regulatory Commission (ERC) cleared late last year the 15-year power supply agreement between the two parties.
But in a message to reporters, ERC Chair Monalisa Dimalanta said the deal was only “provisionally approved,” meaning it remained under evaluation.
DOE Undersecretary Felix William Fuentebella called on other distribution utilities to meticulously conduct their power supply procurement plan to ensure they would only choose generating companies that could deliver within the timelines.
“So we want to prevent any problems either with the regulator, and especially the inconvenience this could bring to our consumers, considering that prices may be affected by delayed delivery in accordance with the contract,” Fuentebella said.
Meanwhile, the DOE also inked on Monday a data-sharing agreement with the ERC to “enhance policy development, improve market oversight and facilitate informed decision-making.”
