South Premiere Power Corporation (SPPC) submitted the lowest bid for the contract to supply 170-megawatt (MW) peaking power through Manila Electric Co.’s (Meralco) Competitive Selection Process (CSP) held on Feb. 2.
The Third-Party Bids and Awards Committee (TPBAC) overseeing the CSP declared SPPC’s offer of PhP6.8198 per kWh, which was below the PhP7.2989 per kWh Total Delivered Headline reserve price, as the best bid. The Total Delivered Headline rate includes Value-Added Tax (VAT) and other charges.
Global Business Power Corporation, through its subsidiaries Panay Energy Development Corporation, Toledo Power Co., and Panay Power Co., submitted a PhP9.7777 per kWh offer, exceeding the reserve price set for the bidding.
Therma Luzon, Inc. initially expressed interest but withdrew its participation in this CSP round.
The TPBAC said the committee’s findings were based on a Pass/Fail assessment of the qualification documents for completeness. It will now conduct a post-qualification evaluation prior to the issuance of the notice of award.
“The TPBAC complied with its mandate to conduct the bid in an open and transparent manner to achieve the least cost of electricity, in accordance with the Department of Energy’s (DOE’s) Department Circular No. 2018-02-0003 on CSP, as amended by Department Circular No. 2021-09-0030,” said TPBAC Chairman Atty. Ferdinand A. Domingo.
Atty. Domingo added: “We thank the DOE for witnessing and the bidders for participating in this CSP. The resulting Power Supply Agreement (PSA) will help shield electricity consumers from the higher power spot market prices that is typically experienced in Luzon during the summer months.”
This CSP round, which involves a contract from Feb. 26 to July 25, is part of Meralco’s preparations to ensure that there will be sufficient, reliable and cost-competitive supply for the summer months when demand is historically high.
“Upon the issuance of a notice of award, Meralco will enter into a PSA with SPPC, which will then be submitted for approval by the Energy Regulatory Commission (ERC). This PSA will help ensure availability of supply, which is especially critical in the upcoming dry months and the National and Local Elections,” said Meralco Head of Regulatory Management Office Atty. Jose Ronald V. Valles.
Meralco is also awaiting the DOE’s approval of the TOR for another CSP covering 180-MW of baseload supply needed this coming summer.