Manila Electric Co. (Meralco) has started bidding out its power supply for the summer season, with proposals already having been submitted by several power firms
Meralco President Oscar Reyes said a proposal for 170 megawatts (MW) from 1560 Energy Corporation would be subjected to a price challenge. If accepted, the deal will be good for a year starting February 2016, he added.
Apart from 1590 Energy Corp., Toledo Power Co. and Panay Power Corp. have also submitted proposals to Meralco. Toledo Power is offering 28 MW while Panay Power wants to supply 45 MW.
Meralco’s move is in compliance with the Competitive Selection Process (CSP) being implemented by the Department of Energy.
Under the CSP scheme, a distribution utility (DU) can sign a power supply agreement with a generation company only after calling for and receiving at least two qualified bids from generation companies.
DUs are allowed to conduct direct negotiations with other power suppliers only after at least two failed CSPs.
Meralco has offered power supply agreements to generation companies with at least three years of experience in owning, operating or administering power plant/s with a corresponding valid Certificate of Compliance.
The invitations were also extended to direct members of the Wholesale Electricity Spot Market that will serve as the challengers.
In case no qualified submissions are received by Meralco’s Head of Energy Management, the company issue a second invitation.