Meralco Electric adjusts terms for 1,800-MW procurement

MANILA Electric Co. (Meralco) said it has amended the terms for bidding on the 1,800-megawatt (MW) capacity procurement.

In a media briefing on Tuesday, Jose Ronald V. Valles, Meralco’s first vice-president and head of its regulatory management, said that this aligns with the recommendation of Energy Regulatory Commission (ERC) Chairperson Monalisa C. Dimalanta.

“Under the ToR (terms of reference), any bidder can offer a maximum of 1,800 megawatts, so she recommended to cap it to a certain level,” he said.

In response to the recommendation, Meralco decided to set a maximum offer of 1,200 MW and a minimum of 150 MW for the bidding process, Mr. Valles said.

With the recommended offer, at least two bidders may win in the competitive selection process (CSP), he noted.

The CSP requires contracts between power generation companies and distribution utilities to undergo price challenges, a process aimed at lowering electricity costs.

Meralco sought the guidance of the ERC to proceed with the opening bid next week.

“As of now tuloy, but we have written the ERC chair, that because there are recommendations and that we have already incorporated to the TOR, we’re seeking guidance if we can proceed with the bid opening on Dec. 27,” Mr. Valles said.

The CSP aims to find new suppliers for the electricity that were supposed to be supplied by Excellent Energy Resources, Inc. (EERI) and Masinloc Power Partners Co. Ltd. (MPPCL) — two subsidiaries under San Miguel Power Global Holdings Corp. (SMPGH).

Their contracts with Meralco were “terminated earlier this year,” the company said. The ERC approved the termination after their power supply agreement application went beyond the date by which it should have been approved by the regulator.

The two companies under SMPGH were supposed to start delivering Meralco’s needed capacity by 2024 and 2025 after securing the supply contracts in 2021.

Six entities have expressed interest in participating in the bidding, which are: GNPower Dinginin Ltd. Co., First NatGas Power Corp., SP New Energy Corp., Mariveles Power Generation Corp., EERI, and MPPCL.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

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