The Manila Electric Co. (Meralco) is seeking the Energy Regulatory Commission’s (ERC) approval for its power supply agreements (PSAs) with two power units of Aboitiz Power Corp.

Meralco said in a disclosure to the Philippine Stock Exchange that it has filed its application with ERC for approval of PSAs with Therma Luzon Inc. (TLI) and AP Renewables Inc. (APRI).

”The PSAs were executed to cover the volume needed by Meralco during the six-month transition period before the start of the commercial operations of open access and retail competition,” said Meralco.

TLI and APRI are both wholly-owned subsidiaries of Aboitiz Power, a publicly-listed holding company that has accumulated interests in both hydroelectric power generation facilities and thermal plants.

TLI is the administrator of the Pagbilao power plant in Quezon, while APRI is the owner and operator of the Tiwi-Makban geothermal power in Tiwi, Albay and Makiling/Banahaw, Laguna.

Under the PSAs with TLI and APRI, Meralco will procure power from both from the expiration of the transition supply contract (TSC) until June 25, 2013 upon ERC approval.

In November, Meralco said that it was seeking extension to retain 200 megawatts of the current 2,400 MW which is under the its existing PSAs.

“I think we only need about 200 MW. Right now, we’ve covered close to 4,800 MW in total TSCs and IPPs [independent power producers]. We’re trying to extend the TSC and hopefully lessen the WESM [Wholesale Electricity Spot Market] exposure,” Al Panlilio, Meralco senior vice president, said earlier.

As for the extension, Panlilio said that they are looking for just six months or until June to fully get the additional 200 MW.

“And it’s really just for six more months and then hopefully when open access happens they can find their own suppliers,” he added.

Under the open access system, major power users, for instance corporations, will have the liberty to choose their own electricity suppliers unlike in the current system where they have to be under suppliers that has jurisdiction over their respective areas.

This system can improve the competitive landscape among electricity suppliers, which may also benefit the consumers in the latter part because in due course, the open access scheme will be extended up to the retail level or households.