Manila Electric Co. (Meralco) said it received nine submissions for a total of 5,850 megawatts (MW) of electricity during the conduct of its 1,800 MW competitive selection process (CSP) for 2024 to 2025.
The actual submissions by yesterday’s deadline were lower, as those that expressed initial interest to join could have reached up to 7,000 MW from 17 firms that participated in the pre-bid conference.
“Some formally withdrew their participation while others did not submit their documents by the deadline,” said Lawrence Fernandez, Meralco vice president and head of utility economics.
The last time Meralco conducted a CSP was in 2019 for a total of 1,700 MW worth of electricity which was said to have resulted in consumers getting total savings of P13.86 billion per year, or a rate reduction of P0.41 per kilowatt hour.
It involved 500 MW for the supply of electricity effective December 26, 2019, for a term of five years from First Gen Hydro Power, AC Energy and South Premiere Power Corp. and another 1,200 MW for the supply of electricity for 10 years effective December 26, 2019, from AC Energy, San Miguel Energy Corp. and South Premiere Power Corp.
Under the CSP, which was made mandatory by the Supreme Court in 2019, a distribution utility may only sign a power supply agreement with a generation company after calling for and receiving at least two qualified bids from generation companies.
Direct negotiation will only be allowed after at least two failed CSPs. – Jed Macapagal