Meralco says affiliates can bid for supply contracts

By: Ronnel W. Domingo - 05:18 AM July 10, 2019

https://business.inquirer.net/274300/meralco-says-affiliates-can-bid-for-supply-contracts

Manila Electric Co. yesterday said its was not against the law for its affiliate companies to take part in a bidding for its supply contracts, reacting to calls against letting related firms to vie for such deals.

Meralco is preparing to undertake competitive selection process (CSP) for several contracts in lieu of proposed power supply agreements (PSAs) that have been pending with the Energy Regulatory Commission.

In a decision made public in May, the Supreme Court said applications for PSA approval that were submitted to the ERC on or after June 30, 2015, must comply with the CSP, a mechanism that is intended to ensure transparency and fair competition in the procurement of power supply.

Meralco said it took “strong exception to the very unfair statement” made by Bayan Muna party-list chair Neri Colmenares and Rep. Carlos Isagani Zarate who said the electricity distribution giant should “show delicadeza and quit self-dealing.”

“(T)hese statements are obviously meant to discriminate against Meralco and its affiliates in participating in the CSP that Meralco is currently undertaking in compliance with the recent Supreme Court decision and Department of Energy pronouncements,” Meralco spokesperson Joe Zaldarriaga told the Inquirer.

“There is no prohibition in the law, the DOE guidelines and even in the SC decision that prevent affiliate generation companies from participating in the bidding for power supply requirements of distribution companies,” Zaldarriaga said.

He added that Bayan Muna should also give attention to other PSAs filed during the same period but had already been implemented without public bidding, instead of “singling out Meralco.”