Meralco pledges 'fair' rates to customers

The Manila Electric Co. (Meralco), the country’s largest distribution utility, on Tuesday maintained that its power rates remain “fair and reasonable” as a result of a “transparent” competitive selection process (CSP). 

“We would like to assure our customers that all power supply contracts resulting from our CSPs undergo a strict review and approval from the ERC (Energy Regulatory Commission) before being implemented to ensure that rates are fair and reasonable,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.

Zaldarriaga was reacting to a statement issued by consumer group Power for People Coalition (P4P), which said that Meralco’s power supply agreements (PSAs) awarded to fossil-fueled plants could trigger rate hikes.

The PSAs mentioned involve the 1,200-megawatt (MW) baseload contract awarded to South Premiere Power Corp. and the 1,800 MW deal won by GNPower Dinginin Co. Ltd., Mariveles Power Generation Corp., and Excellent Energy Resources Inc.

“We strictly observe and follow the requirements and standards set by the government, which includes securing prior approval from the Department of Energy (DOE) of our Power Supply Procurement Plan and the corresponding Terms of Reference (TOR) of the CSPs,” Zaldarriga explained.

“In addition, these TORs also considered suggestions of the ERC Chairperson before they were published,” he added.

Local power generation companies win local PSAs through a competitive bidding system. The chosen supplier provides electric power to distribution utilities like Meralco.