Meralco allots P280-M to power Manila subway
MANILA ELECTRIC Co. (Meralco) will spend P280 million to power the Metro Manila Subway, the electricity distributor said on Monday.
The amount is intended for the development of the 115-kilovolt switching station “that will ensure the provision of reliable and stable power for the country’s underground mass transport system,” the company said in a statement.
The Department of Transportation and Meralco signed an agreement last week for the construction of the switching station in Valenzuela City, which is slated for completion in 2026.
“The Metro Manila Subway will definitely change the way of living in the country’s economic center,” Meralco Executive Vice-President and Chief Operating Officer Ronnie L. Aperocho said.
“As we continue to make significant contributions to nation-building and economic growth, this ceremony underscores Meralco’s unwavering commitment to powering the country’s critical infrastructure by providing reliable, efficient, and sustainable power,” he added.
The Metro Manila Subway is an underground railway line that will run from Mindanao Ave., Quezon City to the Ninoy Aquino International Airport Terminal 3 in Pasay City, reducing travel time between the cities from an hour and 10 minutes to only 45 minutes.
“This collaboration goes deeper than a public-private partnership. It translates to the benefit of subway commuters whom we promised comfortable, affordable, safe, sustainable and accessible train rides,” Transportation Sec-retary Jaime J. Bautista said.
The Metro Manila subway will connect 17 stations in Metro Manila. It is initially scheduled to start full operations by 2027 but was then delayed to 2029 on right-of-ways acquisition issue.
JUSTIFYING PASSED-THROUGH COSTS
Meanwhile, the Energy Regulatory Commission (ERC) is expecting Meralco to submit its complete validation of the fuel costs component this week, justifying the rate adjustment imposed for February electricity bill.
“I think they will file the appropriate pleading with the ERC this week. Will wait for their filing,” ERC Chairperson Monalisa C. Dimalanta said in a Viber message.
Meralco has confirmed that it will file the validated costs with the ERC this week.
Ronald V. Valles, Meralco’s vice-president and head of its regulatory management, previously said that the company was ready to issue refunds to its consumers after it sought guidance from the ERC on how to deal with the in-crease in the price of fuel costs from one of its suppliers, First Gas Power Corp. (FGPC).
He earlier said that Meralco received the ERC’s response on Feb. 13 to its “various letters.” This, however, was after the cost component had already been covered in the February electricity rates.
For the month, Meralco said that it would raise power rates by P0.5738 per kilowatt-hour, attributing it to the higher generation charges from power supply agreements and independent power producers (IPPs).
It said that the increase in IPP charges was brought by higher fuel costs at the Sta. Rita and San Lorenzo power plants operated by FGPC, mainly resulting from the increased use of imported liquefied natural gas.
Meanwhile, the price of Malampaya gas to Sta. Rita increased by almost 12%, following the signing of a new gas supply and purchase agreement between First Gas Corp. and Malampaya consortium.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
