Thai firm Electricity Generating Public Co. (EGCO), through its local coal-power company in Mauban — Quezon Power (Philippines) Ltd. Co. — has secured a 15-year agreement for the unit to supply 400 megawatts (MW) of coal power to a buyer, which the company declined to identify at this point.
The new power supply agreement (PSA) signifies its continued presence in the Philippine electricity market, EGCO said in a statement over the weekend.
EGCO declined to disclose the identity of the retail electricity supplier buyer of the 400-MW capacity, which was formalized last March 24.
In the Philippines, a retail electricity supplier buyer is an end-user, customer, or a “contestable customer” who buys electricity from a retail electricity supplier (RES) that is licensed by the Energy Regulatory Commission, instead of a local distribution utility (DU). Commercial establishments or industrial plants with high electricity consumption can be contestable customers or “retail electricity supplier buyers.”
Those who purchase electricity via retail supply usually have lower monthly bills as they can negotiate for their power rates, given the numerous companies which can offer such services.
“The Quezon Power plant has successfully acquired a new PSA for a long-term contract of 15 years. The new PSA marks the power plant’s ongoing efforts to enhance its service offerings and continue its presence in the Philippines electricity market. The power plant will undergo essential outage maintenance to prepare for the new PSA,” said Dr. Jiraporn Sirikum, the EGCO Group president.
“This strategic move ensures that the power plant will seamlessly continue its commercial operations and provide stability and reliability to Luzon’s grid. Meanwhile, it will consistently generate revenue for the EGCO Group in the long term,” Sirikum added.
EGCO holds a 100 percent stake in Quezon Power, which has a full capacity of 460 MW.
The power plant began commercial operations in May 2000 under a 25-year PSA with the Manila Electric Co. (Meralco).
