THE Manila Electric Company (Meralco) has secured the best bid from Limay Power, Inc. through a Competitive Selection Process (CSP) for its 400-megawatt (MW) interim supply requirement.
Of the three (3) bidders that expressed interest to participate in the CSP, only two (2) submitted their qualification documents, technical proposal, and bid price today.
Limay Power Inc. offered a total headline electricity rate at Php 6.2708 per kilowatt-hour (kWh), inclusive of value-added tax (VAT) and line rental, for the entire 400-MW baseload requirement.
The other generation company, Masinloc Power Co. Ltd., submitted the next best bid of Php 6.2957 per kWh, VAT and line rental inclusive, for 195-MW capacity.
Both offers are compliant with the Php 6.3512 per kWh reserve price set for the bidding.
The submissions passed the criteria contained in bidding documents and pre-qualification evaluation, according to Meralco’s Bids and Awards Committee for Power Supply Agreements (BAC-PSA).
The BAC-PSA is also set to conduct a post-qualification evaluation and submit its recommendation and report to Meralco’s Board of Directors for approval of the best bid as the winning power supplier prior to the issuance of a Notice of Award.
The conduct of this CSP is in accordance with DOE Department Circular No. DC2023- 06-0021, Series of 2023 and Energy Regulatory Commission (ERC) Resolution No. 16, Series of 2023 which require that the bid be conducted in an open and transparent manner. To further ensure transparency and fairness, CSP observers witnessed the submission and opening of bids and the proceedings were streamed live.
The Terms of Reference (TOR) conformity to Meralco’s Power Supply Procurement Plan (PSPP) was reviewed and approved by Department of Energy (DOE). The PSPP, which was likewise approved by the DOE, considers the need for additional available capacity to augment supply to customers through an Interim Power Supply Agreement (IPSA).
The resulting IPSA, which will be subject to regulatory proceedings, will be implemented once approved by the ERC and will be effective until February 2025
