The competitive selection process (CSP) for power supply by the Manila Electric Co. (Meralco) could be delayed anew despite the approval by the Department of Energy of the procedure’s terms of reference (TOR).
Meralco said a prospective bidder, GN Power, is seeking clarification on a rule that will force the winning power generator to be responsible for replacement energy every time its facility shuts down.
“We intend to file a letter to the DOE in response to the query made by a prospective bidder with respect to replacement energy. We will need to await for DOE clarification on that before we finally decide to publish the TOR,” said Jose Ronald Valles, Meralco vice
president and head of regulatory management.
The replacement power could be a burden to either the distribution utility or the power generator.
Traditionally, power plant owners are allowed to go on limited shutdowns to provide time for maintenance work without burdening them for replacement power.
“The concern raised by GN Power was about the obligation for replacement power. They are saying the generator, the prospective bidder, cannot afford to have zero outage allowance.
They are asking for 30 days scheduled maintenance and 15 days forced outage allowance to be reflected in the TOR,” Valles said.
He said based on existing PSAs, Meralco has the obligation to procure the replacement power and charge that replacement power to consumers.
Beyond the 30 days and 15 days outage allowances, the generator will have to procure replacement power at its own risk.
