By Danessa Rivera (The
Philippine Star) | Updated May 7, 2017 - 12:00am
MANILA, Philippines - Manila
Electric Co. (Meralco) has executed a 10-year power supply deal with a unit of
Semirara Mining and Power Corp. for its retail electricity business.
Meralco said its local retail
electricity supplier (RES) signed a power supply agreement (PSA) with
Sem-Calaca Power Corp. to supply 420 megawatts (MW) in capacity for 10 years.
The deal effective from June 29,
2019 up to June 25, 2029, could be extended by another four years.
Sem-Calaca is a wholly-owned
subsidiary of Semirara Mining that owns and operates the 30-year-old 2x300-MW
coal-fired power plant in Calaca, Batangas.
The power company is spending at
least $150 million to rehabilitate the power plant, which will result in higher
capacity and extend its economic life.
Completion of rehabilitation works
is expected in late 2018 to 2019.
Meralco participates in the retail
competition and open access (RCOA) regime through its local RES called MPower.
Under the RCOA regime, end-users
that are part of the contestable market, or contestable customers, are given
the choice to choose their supplier of electricity aimed to foster competition
in the generation Manila Electric Co. (Meralco) has executed a 10-year power
supply deal with a unit of Semirara Mining and Power Corp. for its retail
electricity business.
Meralco said its local retail
electricity supplier (RES) signed a power supply agreement (PSA) with
Sem-Calaca Power Corp. to supply 420 megawatts (MW) in capacity for 10 years.
The deal effective from June 29,
2019 up to June 25, 2029, could be extended by another four years.
Sem-Calaca is a wholly-owned
subsidiary of Semirara Mining that owns and operates the 30-year-old 2x300-MW
coal-fired power plant in Calaca, Batangas.
The power company is spending at
least $150 million to rehabilitate the power plant, which will result in higher
capacity and extend its economic life.
Completion of rehabilitation works
is expected in late 2018 to 2019.
Meralco participates in the retail
competition and open access (RCOA) regime through its local RES called MPower.
Under the RCOA regime, end-users
that are part of the contestable market, or contestable customers, are given
the choice to choose their supplier of electricity aimed to foster competition
in the generation and supply sector.
A local RES is defined as entities
under a distribution utility (DU) that may engage in the business of supplying
electricity to the contestable market without need of obtaining a license from
the ERC.
Currently, MPower accounts for about
50 percent of the contestable market within its franchise, or 18 percent of the
total nationwide.
Meralco has also formed a subsidiary
called Vantage Energy Solutions and Management Inc., after new rules required
all DUs to wind down their local RES in three years and apply for a RES license
to be able to serve the contestable market.
Customers with peak demand of one MW
were mandated to shift to RCOA last Feb. 26 while mandatory contestability for
those with at least 750 kilowatt (kW) is scheduled on June 26.
However, decision on the
implementation on new rules, as well as the mandatory shift to RCOA are still
pending in courts.
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