By
Lenie Lectura - July 30, 2019
THE Manila Electric Co.
(Meralco) has received 22 offers from various power-generation companies
(gencos) that are interested to participate in the competitive selection
process (CSP) of three power contracts with a total capacity of 2,900 megawatts
(MW).
Meralco will bid out
the following contracts: a five-year contract for 500 MW, a 20-year contract
for 1,200 MW and a 10-year contract for 1,200 MW.
“There are seven
bidders for the 500 MW, 11 bidders for the 1,200 MW contract that will start in
2020, and four bidders for the 1,200 MW contract that will start in 2024,” said
Meralco Utility Economics Head Lawrence Fernandez during a press conference on
Monday.
Company officials did
not identify the interested bidders. However, they confirmed that Meralco
PowerGen Corp., the power-generation arm of Meralco, has submitted a letter of
interest to bid for the 1,200 MW contract that starts in 2024.
Earlier, San Miguel
Corp. and MGen said they were looking at participating in the
CSP. Aboitiz Power Corp. and First Gen are also expected
to participate.
Semirara Mining and
Power Corp. (SMPC) Chairman Isidro Consunji had said that the published
requirements “carry very difficult conditions.”
When sought for
comment, Fernandez said the terms of reference were strictly reviewed by
the third-party bids and awards committee.
“In fact, some of the
terms in the contract, particularly the penalty for outage, came from DOE. The
prices also adhere to the DOE’s terms,” said Fernandez.
The CSP requires
distribution utilities (DUs) to hold competitive bidding for their supply
requirements as against securing power deals via bilateral contracts. This
is meant to ensure transparency and fair competition.
Meralco earlier inked
seven PSAs with several power-generation companies, including two from MGen,
which is building power plants under Redondo Peninsula Energy Inc. and Atimonan
One Energy Inc.
The remaining five are
with St. Raphael Power Generation Corp., Meralco’s joint venture with
Consunji-led SMPC; Central Luzon Premiere Power Corp. (CLPPC); Mariveles
Power Generation Corp. (MPGC); Panay Energy Development Corp.; and Global Luzon
Energy Development Corp.
CLPPC and MPGC are
under SMC Global Power Holdings, the power arm of SMC.
However, these PSAs,
with a total capacity of over 3,500 MW, were not implemented following the
Supreme Court order arising from allegations that the Energy Regulatory
Commission gave due preference to Meralco by extending the deadline for
compliance with the CSP rule.
The SC decision
requires all power-supply agreements forged after June 30, 2015, to undergo the
CSP.
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