“There is strong pressure towards an increase in the July generation charge from the peso’s depreciation and from WESM prices,” said Meralco vice president and head of utility economics Lawrence Fernandez.
“The secondary price cap was implemented for 16 of the 31 days in the June supply month, indicating sustained high WESM prices. The situation was aggravated by the red and yellow alerts recently experienced by the Luzon Grid,” Fernandez said. Due to insufficient reserves, the grid operator continued to place the Luzon grid on yellow alert for several hours from June 20 to June 23.
He said the shutdown of the 1,200-megawatt Ilijan natural gas plant in Batangas, with the end of their gas supply and purchase agreement with the Malampaya consortium, led to the delivery of more supply to First Gas. However, reserves of the Malampaya gas field are depleting, forcing First Gas to use liquid fuel for its power plants.
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Source: BusinessMirror - 🏆 19. / 59 Read more »