Power rate hike seen after genco stops grid supply
Customers line up at the Meralco business center along Commonwealth Avenue in Quezon City to settle their electricity bills. (File photo by GRIG C. MONTEGRANDE / Philippine Daily Inquirer)
MANILA, Philippines — Some 7.5 million customers of Manila Electric Co. (Meralco) will end up paying more beginning January after the power unit of San Miguel Corp. (SMC) stopped supplying power to the country’s largest power distributor.
Meralco vice president and head of utility economics Lawrence Fernandez said SMC Global Power Holdings Corp. (SMCGP), the conglomerate’s power arm, sent a notice ceasing their supply agreement effective Dec. 7.
With the power generated by SMCGP out of Meralco’s supply mix, the distribution utility has started sourcing electricity from the Wholesale Electricity Spot Market prices.
Meralco is yet to determine the rate impact of SMC’s termination of the power supply agreement on its customers as it will depend on various factors.
“We still have about two weeks remaining for the supply month and we also don’t know what the trend will be for the supply month in the coming days,” said Fernandez.
