Reacting to a resolution filed by Senator Alan Peter Cayetano earlier in the day calling for the postponement of the firm’s competitive selection process, Meralco senior vice president and regulatory management head Jose Ronald Valles said that none of the potential bidders, including those using Malampaya gas, had raised any objections that warranted a postponement.
In a statement, the firm reiterated that its bidding processes adhere to Department of Energy and Energy Regulatory Commission (ERC) rules, ensuring transparency and compliance with the Electric Power Industry Reform Act's mandate to secure the least-cost supply.
Previous bidding processes were also confirmed to be compliant by the ERC, with the recent 1200-megawatt (MW) bidding process receiving provisional authority for the implementation of the resulting power supply agreement.
Meralco pointed out that the bidding process prioritizes indigenous fuel sources without compromising the least-cost requirement.
Valles assured that all contracts are awarded to the lowest compliant bidder, with no preferential treatment.
He cited the Lopez family-controlled San Gabriel plant — which is fueled by Malampaya natural gas — submitted a bid of P8.45 per kWh for the most recent power supply tender. This exceeded the reserve price and was therefore rejected, with the winning bid coming in at around P7 per kWh.
Meanwhile, the Malampaya gas-powered Santa Rita and San Lorenzo plants could not participate in an earlier 1800-MW baseload tender as both still had live supply deals with Meralco and neither faciltiy had any excess capacity to offer.
Meralco stressed that the terms of reference for each bidding process are uniformly applied, ensuring no hidden costs or discriminatory practices in the selection process.
