Meralco to pay Napocor subject to certain conditions

The Department of Energy (DOE) said the Manila Electric Co. (Meralco) is willing to pay its P1.374-billion obligation to the National Power Corp. (Napocor) subject to certain conditions.

Energy Secretary Mario V. Tiaoqui said he is taking a direct hand in the electricity row as it involves interest of the general public. He said they are scheduled to meet with officials of Napocor and Meralco tomorrow.

While Meralco has indicated its willingness to pay its obligations, it is expected that it be allowed to maximize the substations of Napocor to bring in power from its independent power producers (IPPs).

The problem is that the Zapote substation, through which the power is scheduled to pass, will not be ready until July next year. To allow the entry of power from Meralco’s IPPs, Napocor must redirect other electricity feeds from its own IPPs from different substation other than Zapote.

The controversy regarding the P1.374 billion Meralco obligations to Napocor is related to the 10-year power supply contract between Meralco and Napocor which was signed in 1994. Meralco wants to buy less than 2,500 megawatts (MW) from Napocor but the government-run corporation wants to sell 3,600 MW.

Meralco insist on not paying Napocor for its alleged failure to transmit the power generated by the former’s IPPs. The IPPs are the 1,000-megawatt (MW) Sta. Rita combined-cycle plant in Batangas, the 500-MW San Lorenzo power plant, and the 440 MW Quezon Power Philippines Ltd. plant in Mauban, Quezon. – Ted Torres