ERC directs Meralco, First Gen to justify proposed supply deal extension

THE Energy Regulatory Commission (ERC) has asked First Gen Corp. and Manila Electric Co. (Meralco) to justify their proposed extension of a power purchase agreement (PPA) for supply from a Batangas gas-fired power plant.

- Sheldeen Joy Talavera

In an order dated Aug. 22, the ERC directed the companies to submit an explanation on “whether the extension of contract will not result in an excess contracted capacity as well as a simulation on the impact thereof on the generation charge.”

The order was issued in response to the joint motion filed by First Gas Power Corp. (FGPC), a subsidiary of First Gen, and Meralco on Aug. 22 seeking approval of an interim PPA extension.