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Thursday, January 08, 2004
Meralco renegotiates deal with IPP
By Cherry T. Lim
ELECTRICITY distributor Manila Electric Company (Meralco) has amended its power purchase agreement with First Gas, an independent power producer (IPP), resulting in up to P30 billion in concessions or immediate savings of P10.6 billion for consumers.
In a disclosure to the Philippine Stock Exchange, Meralco said the “concessions with immediate value include First Gas shouldering local business and community taxes, while conditional concessions include increasing discounts on electricity rates, paying higher penalties for non-performance, and until 2011, not charging Meralco for energy delivered beyond the contracted amount.”
Meralco buys power from the National Power Corp. and its three IPPs, which are Quezon Power, First Gas’ Sta. Rita plant and FGP Corp.’s San Lorenzo plant, the last two of which use natural gas from Malampaya.
The renegotiated deal requires Energy Regulatory Commission approval.
(January 8, 2004 issue)
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