Meralco seen signing supply deal with Napocor.

(From Philippine Daily Inquirer)

Byline: Abigail L. Ho

THE DEPARTMENT of Energy expects Manila Electric Co., the country's biggest power distributor, to sign a transition supply contract (TSC) with the state-owned National Power Corp., a move that is expected to make the state firm's Luzon generation assets more attractive to potential investors.

Energy Secretary Vincent Perez explained that this would be in compliance with Section 67 of RA 9136 or the Electric Power Industry Reform Act of 2001 (Epira), which required Napocor to submit for the approval of the Energy Regulatory Commission a TSC duly negotiated with distribution utilities like Meralco.

This TSC will provide the terms and conditions for electricity supply in preparation for the introduction of the open access transmission service (OATS).

The OATS will allow large power users, or those using at least one megawatt (MW) of electricity, the option to choose their own power supplier. Under the Oats, National Transmission Corp. will grant these power users access to its lines.

As the country's biggest distribution utility, Perez said Meralco played a big role in ensuring the smooth transition to retail competition and open access.