Selling power to itself; There is no shortage.
by Bernie V. Lopez (eastwindreplyctr@gmail.com)
A recent Committee on Energy hearing revealed that Therma Mobile (Aboitiz) sold power exclusively to Meralco at a low price of about P16 per kilowatt hour (kwh) at the Wholesale Electricity Spot Market (WESM). Meralco then turned around and sold it to itself at about P62 per kwh, making a markup of about 400%. This is the reason for the highest generation rate increase in Philippine history from P5.65 TO P9.11 per KWH, not Meralco’s claim of shortages due to shut-downs. There was no shortage.
Meralco said that prices soared due to a shortage caused by the Malampaya shut-down, and the simultaneous shut-down of other power generators. Meralco’s website however revealed that in December 2013, it bought 38.3% of its power purchases from all six generators under the Power Supply Agreement (PSA), contradicting its claim of simultaneous shut-downs. The six included SEM-Calaca, Masinloc, Therma Luzon and Therma Mobile (both Aboitiz), San Miguel Energy, South Premier (servicing the Korean-owned Ilijan. See for yourself at the source below.
There was no shortage for two reasons. First, Meralco was able to buy from the six generators mentioned above. Second, DOE did not order the start-up of the government-owned Malaya precisely because there was no shortage. Meralco said its expensive WESM purchases caused the increase in generation cost, yet they bought only a measly 9.5% of purchases at WESM in December 2013.