This comes after the call of Senator Alan Peter Cayetano to suspend the electricity distributor’s ongoing competitive selection process (CSP) for allegedly being biased against older power plants that use natural gas.
In an interview with InsidePH, Meralco senior vice president and regulatory management office head Jose Ronald Valles said that no prospective bidder has requested for a postponement of the August 2 deadline.
Valles explained that the only prospective bidder whose plants are natural gas-powered is Lopez family-controlled First Gas Power Corp.
“Even First Gas did not ask for a postponement,” the Meralco official pointed out. “So I don’t know why the bidding should be postponed.”
There are also no requests or directives from the Department of Energy (DOE) or the Energy Regulatory Commission (ERC) for any postponement or changes as both agencies had earlier determined Meralco to be fully compliant with their rules and regulations.
Valles stressed that any postponement will put at risk Meralco’s timetable for securing electricity supply for its expected needs by September 2025.
Not being able to lock in supply agreements this early will expose consumers to the risk of higher down the road, especially if the power retailer will have to source supply from the electricity spot market on short notice.
The official said Meralco encouraged plants using indigenous fuel like natural gas from Malampaya to submit bids in compliance with DOE rules.
In the event of a tie in terms of pricing, Meralco will award the deal to the supplier using indigenous fuel. But barring a situation like this, Valles said Meralco is bound by law to award the supply contract on Friday based on the lowest price.
“We have to emphasize that our primary mandate is to secure the least cost for our consumers,” he said. “If indigenous fuel is as cheap as they claim, its price should be competitive. They should comply with the regulations set by government.”
Senior Reporter
