Friday, December 18, 2015

Meralco bids out supply requirements for summer 2016



by Myrna Velasco December 17, 2015

In line with the mandated competitive selection process (CSP), power utility giant Manila Electric Company (Meralco) will bid out power contracts for 243 megawatts of peaking capacity to beef up its summer supply next year.
Meralco president Oscar S. Reyes said the CSP process they will undertake a “price-matching” scheme; wherein they will take in tenders to match the price offers already lodged by 1590 Energy Corporation, Toledo Power Corporation and Panay Power Corporation.
The offer made by 1590 Energy is for 170 megawatts; 28MW for Toledo Power; and Panay Power set tender for 45MW.
This will be under their solicited interim power supply agreements (IPSAs) that will serve their peaking requirements from March to July next year. The contract is for one year – that will lapse in 2017.
He stressed that the CSP policy laid down by the Energy Regulatory Commission (ERC) is an amenable arrangement to them so far.
“We can work around that framework,” Reyes said, noting that their major opposition in the version set out by former Energy Secretary Carlos Jericho L. Petilla then had been the engagement of a third party which will supposedly undertake the auction process under the CSP.
“We can take all three contracts,” he said, but in compliance to the regulator’s mandate, they would have to subject these first to a competitive selection undertaking.
Reyes has explained that if no offers will be received from other parties or generators, then they can come up with a decision eventually to just strike a deal with 1590 Energy, Toledo Power and Panay Power.

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