The Energy Regulatory Commission (ERC) has authorized Manila Electric Co. (Meralco) to continue sourcing power from the 1,200-megawatt (MW) Sta. Rita gas-fired power plant in Batangas for another six months, with projected consumer savings of P4.2 billion from the use of Malampaya gas and other rate-reduction measures, BusinessWorld reported.
Jose Ronald V. Valles, Meralco senior vice-president, announced the extension, noting that the continued use of indigenous natural gas from the Malampaya field would help lower electricity costs for consumers. The P4.2 billion in projected savings reflect the benefits of utilizing the cheaper fuel source compared to alternative fuels like imported coal or diesel.
This marks the third extension of the supply agreement between Meralco and the Sta. Rita plant operator, First Gen Corp., as the ERC continues to approve temporary arrangements to ensure stable power supply while longer-term contracts are being negotiated. The extension is expected to benefit Meralco's millions of customers in its franchise area.