San Miguel unit offers Meralco new 330-MW supply contract

SPI’s termination of its PSA with Meralco came after the Court of Appeals nullified an ERC ruling denying the rate hike petition jointly filed by San Miguel and the power distributor back in 2019.To recall, SPI and SPPC entered into a 10-year power supply deal with Meralco in 2019 to provide 1,000 MW of capacity from the Ilijan and Sual plants.

The headline rate of Meralco’s PSA with SPI back then was at P4.6314 per kilowatt-hour , while the deal with SPPC pegged the rate at P4.2455 per kWh. In 2019, spot market prices averaged P8.47 per kWh. However, both SPPC and SPI issued termination notices to Meralco in April last year, saying that it could no longer provide supply due to the negative impact of Russia’s invasion of Ukraine on fuel costs.The case was elevated to the CA after the ERC denied both the termination and the rate hike proposal.SPPC currently has a separate EPSA with Meralco that was signed in March for a one-year supply of 480 MW.

As for the deal with San Miguel’s Excellent Energy Resources and Masinloc Power Partners for 1,800 MW of capacity, Valles said they were waiting for ERC to accept the termination before proceeding to another round of bidding.Subscribe to our daily newsletter

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