Metro Manila News
Meralco power supply deals to bring down power rates
Consumers are expected to save around P0.28 per kilowatt (kWh) as the Manila Electric Company (Meralco) executes new power supply agreements with its winning suppliers.
In a statement, the Meralco announced on Monday the three “best bids” it received for the supply of 1,200 megawatts (MW) effective December 26, 2019 for a term of 10 years.
Once the new supply agreements, which can lower generation charges, are implemented, Meralco consumers are expected to save PHP9.46 billion annually for 10 years.
The electric distribution utility company said the “best bids” were those submitted by PHINMA Energy Corporation, San Miguel Energy Corporation, and South Premiere Power Corporation.
PHINMA Energy Corporation offered to supply Meralco 200 MW with an all-in headline rate of PHP4.7450 per kilowatt hour (kWh) and computed all-in levelized cost of electricity (LCOE) of PHP4.8849/kWh; San Miguel Energy Corporation for 330 MW at all-in headline rate of PHP4.6314/kWh and computed all-in LCOE of PHP4.9299/kWh; and South Premiere Power Corporation for 670 MW with an all-in headline rate of PHP4.6314/kWh and computed all-in LCOE of PHP4.9300/kWh.
These bids are much lower than the all-in headline rate, inclusive of value-added tax (VAT), of PHP4.9196/kWh and computed all-in LCOE PHP5.3694/kWh reserve prices pre-determined by Meralco based on recently Energy Regulatory Commission (ERC)-approved contracts and disclosed only upon the opening of bids.
Meralco, in a statement, said the resulting prices from the competitive selection process (CSP) are significantly lower than their average generation cost today of around PHPP5.88 per kWh.
It clarified that the all-in rate already includes line rental and VAT, and the cost of replacement power for all plant outages.
The generator companies will also pay a fine if they are unable to deliver power, which will be used to reduce the generation cost to the consumers.
Pursuant to the instructions to prospective bidders, the “best bids” will now undergo post-qualification.
The Third Party Bids and Awards Committee is expected to issue the respective notices of award in favor of those who satisfactorily passed post-qualification on Tuesday, to be followed by the signing of the power supply agreements with Meralco within the week.
The city government of Manila strengthened its monitoring of all markets and ports to prevent the entry of the African Swine Fever (ASF). The Veterinary Inspection Board (VIB) said it is “way ahead” in its campaign against the sprea...
Philip Morris International is placing wage equality and gender balance at the core of its business strategy as it transforms from a traditional cigarette manufacturer to a science and technology-centered company with a raft of innovative smoke-free ...
The Metro Rail Transit (MRT) 3 plans to extend its operating hours by an hour to serve more passengers. However, this will mean cutting by an hour the MRT 3’s scheduled rehabilitation done during off-revenue hours (11 p.m. to 3 a.m.), which ma...
The Department of Education (DepEd) and World Vision have launched Brigada Pagbasa, a movement that seeks to enhance the reading skills of the Filipino children. In his speech, Tonisito Umali, DepEd Undersecretary for Legislative Affairs, Exter...
The Department of Health (DOH) has signed a memorandum of agreement (MOA) with Rotary International's 10 districts to heighten polio awareness and intensify its vaccination campaign against the disease. This, after the DOH confirmed on Thur...
The National Capital Region Police Office (NCRPO) asked the remaining persons deprived of liberty (PDLs) who were released through the Good Conduct Time Allowance (GCTA) to surrender for their own safety. "So we advise them not to do ...