Metro Manila, December 5 ------ San Miguel Corporation (SMC), through its power unit San Miguel Global Power (SMGP), is offering Manila Electric Company (Meralco) the full use of its Ilijan Natural Gas at a minimal tariff to stabilize power supply and keep energy prices as low as possible for consumers.
In a statement, SMC President Ramon Ang said using the entire 1,200 megawatts capacity of the natural gas plant in Batangas City will only cost Meralco P1 per kilowatt hour (kWh). “Essentially, this will mean that the incremental power supply costs from such capacity for households may be cut down significantly compared to prevailing costs from coal power generation,” he said.
Ang added that SMGP has already held preliminary talks with Meralco through its subsidiary South Premiere Power Corp. in an effort by both companies to prevent increasing power rates. “As we have said in the past, we will continue to look for ways to help make sure consumers will still have some protection from the effects of skyrocketing global fuel prices. This is one of the best and most direct ways we can show solidarity with our people in this time of crisis,” the SMC’s chief said. Ang also said SMGP is offering to help Meralco source fuel for the Ilijan facility, whether from its own allocation of Malampaya gas or liquid fuel.
He further said that SMGP is willing to work with Meralco in using the 70 petajoules of banked gas it acquired from the Philippine National Oil Company for a price significantly below the market rate for coal power generation. According to the SMC head, this would provide Meralco the flexibility to manage its overall power generation costs and guarantee a sufficient supply of electricity. Ang described the crisis in fuel “a shared burden by all Filipinos—power consumers, the power sector, government.”
“By immediately foregoing returns, we continue to carry our share of the burden, while getting just enough to make sure plant operations continue and remain sustainable,” he said.
Source: cnnphilippines.com