Danessa Rivera (The Philippine Star)
- December 4, 2019 - 12:00am
MANILA, Philippines — Energy
Secretary Alfonso Cusi has directed Manila Electric Co. (Meralco) and other
distribution utilities (DUs) to prepare for the expected increase in demand
next summer and in the succeeding years.
“I have written Meralco. I’m asking
them what are their measures to make sure they can cope with the increase in
demand, and that there is an assurance of supply. I asked them how they will
cover for the increased demand in their franchise area,” Cusi said.
Cusi also posed the same question to
other DUs and electric cooperatives.
“The same goes for other coops,
other franchise areas,” Cusi said.
However, Cusi said Meralco should
stick to the agency’s recommendation on the terms of reference (TOR) for its
pending competitive selection process (CSP).
“We have given our recommended TOR,
which is to promote open, transparent, competitive selection process. I hope
they will listen to our recommendation,” Cusi said.
The suggestions were made after the
CSP for the 1,200-megawatt (MW) greenfield capacity last month was declared a
failed bidding with only Atimonan One Energy Inc. (A1E), a unit of Meralco
Powergen Corp. (MGen), submitted its offer.
One of the DOE recommendations is to
allow stacking of capacity of several power plants to meet the 1,200-MW supply
requirement of Meralco.
Other suggestions are to allow all
power plants to participate in the bidding, allow plants to contract or sell
only a part of its capacity to the distribution utility.
In October, Meralco said it would
proceed with the second round of its CSP for 1,200-MW greenfield capacity with
relaxed rules, but would not oblige to all of the suggestions made by the DOE
in changing the TOR of the competitive bidding.
Under the CSP for greenfield
capacity, the PSA will cover the supply of 1,200 MW for 20 years starting 2024.
However, Meralco has yet to publish
its invitation to bid for the second round of CSP.
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