Foreign, local power firms make aggressive bids for Meralco supply contracts

Foreign and local energy companies are expected to flock the scheduled competitive selection process (CSP) of Manila Electric Co.(Meralco) next week for the supply of 1,800 megawatts of capacity over a 20-year period.

Meralco, the country’s biggest distributor received a total of 7,000 MW of offers from various bidders that will hopefully bring competitive prices that will benefit its more than seven million customers.

“At least three interested bidders increased their offered capacities for the CSP. As a result, the aggregate offered capacity now totals 7,000 MW, from the original 6,050 MW offered when the invitation to bid was first published,” said Lawrence Fernandez, Meralco head of utility economics.

He declined to give the number of bidders as this may affect the competitiveness of the CSP, which was moved to January 27 from the original January 25 schedule.

“We are hopeful that the increase in offered capacity will mean more competitive prices for the 1800 MW requirement being bid out to the benefit of Meralco’s consumers,” he said.

The submission of bids is scheduled on January 27 while the opening of price offers of qualified bidders will be on February 10.

The bidding will be open to all serious bidders that meet the financial, technical, commercial, and legal requirements of the company.

Under the invitation to bid, the minimum offered contract capacity per bidder shall be at least 150 MW.

Meralco said that in evaluating the financial offers of the bidders, the best interest of the company’s captive customers shall be paramount.

Under Sec. 23 of the Electric Power Industry Reform Act of 2001, the principle of least cost in the supply of power to captive customers shall prevail and be applied to establish and determine the best bids.

Of the 1,800 MW capacity of Meralco, 1,200 MW shall be made available by December 2024 and additional 600 MW by May 2025.

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