Thursday, December 5, 2019

Meralco, DUs told to prepare for surge in demand


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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