Meralco asserts bidding compliance, says power supply deals passed all reviews

Meralco defended the integrity of its Competitive Selection Process (CSP) in response to criticism by an official of the Department of Energy (DOE) of its power supply agreements (PSAs), particularly the one with Excellent Energy Resources Inc., saying the process followed all government-mandated procurement rules.

Insider spotlight:

• Meralco says 2023 CSP followed all DOE and Energy Regulatory Commission regulations.
• Cites DOE-approved plans as basis for procurement activities.
• All bids went through technical, financial, and legal review.
• PSAs include provisions for delays, penalties, and backup power.
• Rebuts claims that Excellent Energy contract sidestepped regulatory processes.

“Meralco’s CSP… and the PSAs resulting therefrom, complied with all government policies for the procurement of power for its captive customers,” the company said, referring to its bidding for 1,800 megawatts of electricity supply held in 2023.

The utility pointed out that its Power Supply Procurement Plan (PSPP) was approved by the DOE and serves as the basis for all its CSPs. “Except for instances where exigent circumstances are present, Meralco only sources power… through CSP based on its DOE-approved PSPP,” it said.

All bids were subject to rigorous evaluation. “Bids… go through strict technical, financial, and legal evaluation to ensure faithful compliance with relevant DOE and ERC rules and regulations,” the statement added.

Meralco noted that uncertainties such as plant delays or regulatory holdups are factored into its PSAs, with terms reviewed and approved by the ERC. These include price caps, penalties, and replacement power terms.

— Edited by Daxim L. Lucas