The Third-Party Bids and Awards Committee (TPBAC) of the Meralco Competitive Selection Process (CSP) said Excellent Energy Resources, Inc. (EERI) and Masinloc Power Partners Co. Ltd (MPPCL) edged out bidders during the opening of bids Friday.
EERI submitted a levelized cost of electricity (LCOE) of P4.1462 per kilowatt hour (kWh) while MPPCL offered P4.2605 per kWh.
Both bids are significantly below the LCOE reserve price of P5.2559 per kWh.
Bidders with the best bids will now undergo post-qualification within seven days. Thereafter, the TPBAC shall issue respective notices of award in favor of those who satisfactorily passed post-qualification.
EERI offered to supply Meralco 1,200 MW, from a natural gas-fired power plant, while MPPCL offer is at 600 MW from a coal-fired power plant.
Mariveles Power Generation Corp. (MPGC), Atimonan One Energy Inc. (A1E), and GNPower Dinginin Ltd. Co. (GNPD) qualified as “possible next best bids” with LCOEs of P4.3321 per kWh, P4.6338 per kWh, and P5.2500 per kWh, respectively.
Meanwhile, St. Raphael Power Generation Corp.’s LCOE of P5.4426 per kWh failed to meet the reserve price.
“We at TPBAC look forward to completing this ongoing CSP for the much needed power supply requirement that will provide adequate and reliable electricity at competitive prices to Meralco’s customers for years to come,” TPBAC chairman Ferdinand A. Domingo said.
For his part, Meralco VP and head of Utility Economics Department (UED) Lawrence S. Fernandez said a successful CSP and PSA signings would result in additional savings and, ultimately, least cost to consumers.
“In fact, in 2020, Meralco’s customers experienced a net rate reduction of P1.3870 per kWh, equivalent to bill reduction of more than P277 for a 200 kWh household. With this continued downward trend, largely due to these new power supply contracts, Meralco’s rates today are at their lowest levels in three years,” Domingo said.