MANILA – The Manila Electric Co. (Meralco) disputed on Monday its allegedly high charges to Millennium Energy Inc. under their distribution wheeling service agreement (DWSA).
“It’s not exorbitant. Millennium wants us to waive it. We have been discussing to work on a settlement, but they just refused to pay,” Meralco senior vice president and head of Customer Retail Services and Corporate Communications Al Panlilio said in a text message.
He noted the rate charged to Millennium Energy was approved by the Energy Regulatory Commission and is similar to its charge to other generation companies.
The power plant allegedly charged excessive rates is Millennium Energy’s 100-megawatt diesel in Navotas City.
Energy Secretary Zenaida Monsada told reporters on Monday the department will coordinate with the ERC regarding the dispute.
She pointed out the commission has jurisdiction on the case as it involves rates.
ERC Chairman Jose Vicente Salazar disclosed last week that Millennium Energy has cancelled its DWSA with Meralco.
The contract requires Millennium Energy to pay Meralco for its connection despite the power delivered is outside Meralco’s franchise area.
Salazar noted the situation is crucial especially these summer months, aside from the imposed must-offer rule by the power market operator, Philippine Electricity Market Corp.
The chairman further explained the commission was involved due to the possibility of higher power rates for the dry months caused by a shortage in capacity.
Millennium Energy also operates a 620-MW combined cycle power plant in Limay, Bataan.