ERC Okays NPC-Meralco Supply Deal

Article excerpt

The five-year transition supply contract (TSC) that binds utility firm Manila Electric Company (Meraclo) and National Power Corporation (NPC) was already given provisional approval by the Energy Regulatory Commission.

The supply agreement commenced on November 17, 2006 until year 2011; and prescribes Meralco's procurement from NPC of about 6,600 gigawatt hours (GWh) annually to partly satiate its demand.

However, if open access gets implemented prior to the contract's expiration, this will automatically lapse at the end of first year of implementation of such policy.

Open access meant the regime wherein end-users will be given that power to choose their preferred electricity suppliers. The initial threshold level for those which can avail of such privilege would be the customers with 1.0 megawatt of peak demand; and this will be brought down gradually until it reaches the household level.

ERC Chairman Rodolfo B. Albano noted this supply agreement is a crucial development because this "will help protect the Meralco customers against price fluctuations at the WESM (Wholesale Electricity Spot Market). …