TO help mitigate the impact of a looming energy shortfall next year, Manila Electric Co. (Meralco) has entered into an interim power supply agreement with PanAsia Energy Inc, the electric distribution utility said.
In a disclosure to the Philippine Stock Exchange (PSE) on Friday, Meralco said it signed a deal with PanAsia for the purchase of up to 270 megawatts (MW) of electricity from January 26 to April 25, 2015 and up to 180 MW from April 26 to July 25, 2015.
PanAsia operates a diesel-fired power plant in Limay, Bataan.
The agreement will take effect as soon as it is approved by the Energy Regulatory Commission (ERC) and will expire on July 25, 2015.
The move is part of Meralco’s continuing efforts to source additional capacities through interim bilateral contracts with power producers with available contracted capacity.
“The IPSA was entered into by Meralco to help mitigate the impact of the forecasted supply constraint during the summer months of 2015,” Meralco said.
Besides PanAsia, Meralco has also signed interim power supply agreements with various power suppliers to address the anticipated power problem.
It has signed a 50-MW power supply deal with BacMan Geothermal Inc., a unit of Lopez-owned Energy Development Corp. (EDC), as well as with Aboitiz Power Renewables Inc. for 50 MW of power supply from the Makban geothermal plant in Laguna.
Meralco resident Oscar Reyes earlier said that the company is also extending its contract with Global Business Power Corp. and 1590 Energy Corp.
Reyes assured their customers that Meralco is securing short-term power supply agreements to ensure service continuity during the critical summer months of 2015.
The Department of Energy (DOE) expects a shortfall in power reserves next summer due to increasing demand and scheduled maintenance outages, which prompted Energy Secretary Carlos Jericho Petilla to recommend that President Benigno S. Aquino 3rd seek emergency powers from Congress to address the problem.