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 Metro Rail Transit Line 3 (MRT-3) plans to deploy three Dalian trains this September. The Department of Transportation (DOTr) is consulting maintenance and rehabilitation provider Sumitomo-MHI-TESP for the plan. MRT-3 director Michael Capati sa...
The Commission on Elections (Comelec) has received more than 2 million voter applications in the first five weeks of the registration for the Barangay (Village) and Sangguniang Kabataan (Youth Council) elections next year. Data from the Election and...
President Rodrigo R. Duterte said he prefers that senior inmates 70 years old and up be considered for parole. "Ako I’ll ask the administration, whoever will take over or the Secretary of Justice to fast-track ‘yung mga ma...
The Philippine Charity Sweepstakes Office (PCSO) had donated P1 million to the Gat Andres Bonifacio Memorial Medical Center (GABMMC) in Tondo, Manila. PCSO General Manager Royina Garma said the P1-million aid will be used to improve the operations o...
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 ...
The Metro Rail Transit Line 3 (MRT-3) reported that the number of unloading incidents from their trains went down to an eight-year low of 18 in the first nine months of 2019. This is lower than 480 unloading incidents recorded from January to S...