ERC approves Meralco power deals with SMC, Ayala

The Energy Regulatory Commission (ERC) has finally approved the original rates agreed under the power supply deals of Manila Electric Co. (Meralco) with two renewable producers, involving nearly 500 megawatts (MW).

ERC chief Francis Saturnino Juan bared this to reporters on the sidelines of the energy forum that the Economic Journalists Association of the Philippines hosted on Thursday.

“We promulgated it yesterday. So, it’s up to the parties already to schedule when the delivery will commence,” Juan said.

The supply deals were secured with San Miguel Corp.’s San Roque Hydro Power, Inc. (SRHI) and Gigasol3, Inc. of Ayala-led ACEN Corp.

SRHI has committed to supplying 340 MW for P7.10 per kilowatt-hour (kWh). Gigasol offered 139 MW for P8.1819 per kWh.

However, a previous ruling from the commission only authorized for a lower fixed rate for both deals, reaching only P5.1908 per kWh. It also noted there would be no “any escalation or adjustment.”

This prompted San Miguel to file a “non-acceptance letter.”

Meralco then said that if the deal would not push through, it may impact the group’s electricity supply to more than eight million consumers.

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Juan said they had considered this reason in approving the energy deals.

The ERC official also noted that the two deals were products of a competitive selection process (CSP).

“We took a look at the process undertaken by Meralco and its compliance with each and every requirement under CSP rules,” Juan added.

In an earlier open commission meeting, Juan hinted at changing the commission’s rules governing power supply deals amid mounting backlogs caused by tedious review processes.