SMC Global Power Holdings Corp. is calling on Manila Electric Co. (Meralco) to fast-track the competitive selection process (CSP) of two pending power plant projects in compliance with the Supreme Court ruling last month on bidding for power supply agreements.
The two power plants to be developed have a total capacity of over 1,000 megawatts (MW).
The CSP is a process that will ensure fair competition in the selection of power supplies between distribution utilities (DU) and power generation firms.
“We submit ourselves to CSP. We have already advised Meralco na umpisahan na ang CSP. I think everybody will abide. For me, whatever they do, we will join the bidding. At the end of the day, the lowest price wins. We wait for Meralco to call for a CSP. Meralco has changed leadership, so we will wait,” SMC President Ramon Ang was quoted in a BusinessMirror report.
The PSA between Meralco and the power firm has a combined capacity of 1,000 MW. It was included in the 90 PSAs covered in a Supreme Court ruling last month in which the high court ruled against a circular issued by the Energy Regulatory Commission (ERC) that suspended the CSP requirement from PSAs.
The two power plants are Central Luzon Premiere Power Corp. (528 MW) and the Mariveles Power Gen. Corp (528 MW). They will supposedly supply Meralco’s power needs for 20 years.
Other power projects in the pipeline advancing before the SC ruling are the 1,200 MW Atimonan coal-fired power plant in Quezon province and the 600 MW Subic coal-fired power plant.
As mandated, the DOE is responsible to monitor the competitive bidding process which should be done in an open, transparent, effective and efficient manner.”
“In adherence to the SC’s judgment, we call for the exigent conduct of CSP for the PSAs of DUs, which include electric cooperatives and private corporations like Meralco. Power development in our country, particularly in Luzon, has been at a standstill for three years. We can no longer afford any further delay. We need to act now with extreme urgency to make up for the lost time,” Energy Secretary Alfonso Cusi was quoted in the report.
The DOE is still assessing the impact of the SC decision on the supply contracts of DUs and electric cooperatives, which may have an effect on their power supply portfolio.