By Danessa Rivera (The
Philippine Star) | Updated May 26, 2016 - 12:00am
MANILA, Philippines – The Energy
Regulatory Commission (ERC) has allowed Millennium Energy Inc. (MEI) to supply
capacity to the grid using the distribution system of Manila Electric Co.
(Meralco) without paying wheeling charges in the meantime to ensure supply in
the Luzon grid.
The power regulator decided to grant
MEI’s application for interim relief from paying Meralco’s wheeling charges,
ERC chairman Jose Vicente Salazar said in a text message yesterday.
“The Commission yesterday
acted on Millennium Energy Inc.’s application for interim relief by
directing Meralco not to disconnect MEI from its distribution system and
allowing the said plant to export its energy using Meralco’s distribution
system pending resolution of the dispute resolution case filed by MEI,” he
said.
The ERC also said MEI will only pay
the actual dispatch until the power regulator resolves the issue between the
two parties.
“Moreover, for purposes of the
distribution wheeling charges, the Commission decided that Meralco shall not
impose a guaranteed minimum billing demand (GMBD) on MEI, in the interim, but
shall only bill based on the actual use or dispatch of the MEI plant subject to
ERC approved distribution wheeling charges,” Salazar said.
“This resolution by the Commission
is aimed at ensuring reliability and adequacy of supply in the Luzon grid,” he
said.
Last month, MEI decided to rescind
its distribution wheeling service agreement (DWSA) with Meralco due to high
charge under contract.
This high charge, called wheeling
charge or rate, is required to be paid by MEI under the contract since it will
dispatch capacity to other distribution utilities (DUs) using Meralco’s
distribution facilities.
MEI owns the 310-MW Navotas I and II
gas turbine power plant at the Navotas Fish Port complex, which is part of
Meralco’s franchise area.
No comments:
Post a Comment