THE Energy Regulatory Commission (ERC) has approved the Power Supply Agreement (PSA) between Manila Electric Co. (Meralco), the country’s biggest power distributor, and San Buenaventura Power Ltd. Co. (SBPL).
The ERC, however, said the PSA, which will last for 20 years, should be subject to modifications.
San Buenaventura is a power company that is majority-owned by Meralco PowerGen Corp., a unit of Meralco.
Based on the ERC decision, Meralco and SBPL should not pass on any additional cost resulting from non-sharing of facilities between SBPL and Quezon Power Philippines Limited (QPPl).
The power supply will be sourced out from soon-to be constructed San Buenaventura’s 455-megawatt (MW) coal plant in Mauban, Quezon.
The applicable base rates will be P14,721 per kilowatt hour (kWh) for the Annual Capacity Fee (ACF).
Inter-connection facilities capacity payment will be P151 per kilowatt.
“The above fees shall be subject to adjustments provided in the PSA,” ERC said.
Meralco President Oscar Reyes earlier said they were just waiting for final approval of the ERC before pushing with construction of the Mauban coal plant.
Reyes added that they are targeting to finish the construction of the San Buenaventura coal plant by 2018.