By MYRNA M. VELASCO
The legal and technical teams of power utility giant Manila Electric Company (Meralco) are reviewing anew some propounded further revisions on the terms of reference (TOR) for its competitive selection process (CSP) of a 1,200-megawatt greenfield capacity tender.
“The TOR is being updated and will be republished,” Meralco Vice President Lawrence S. Fernandez has noted.
With portended new amendments on the CSP terms, Fernandez specified that “the deadlines, such as for the submission of Expressions of Interest, will be adjusted to consider the new republication date.”
The Meralco executive indicated that the proposed changes in the TOR for the power supply agreement (PSA) auction are “still under review by (the firm’s) technical and legal teams.”
Following that process, Fernandez emphasized that “the TOR will go through the TPBAC (third party bids and awards committee) for republication.” The TPBAC on Meralco CSP processes is chaired by lawyer Ferdinand Domingo.
Meralco issued a notice on December 27 last year that it targets to bid out the PSA for its greenfield capacity supply portfolio by February this year. The expected capacity is set for delivery in year 2024.
However, just a week after that, the utility firm decided to push for revisions anew on its CSP’s terms of reference – in keeping also with the Department of Energy’s wishes that it must find a way to broaden the participation of more electricity generating firms.
“The second invitation to bid for the second round of bidding for the contract capacity of 1,200MW; COD (commercial operation date) 2024 will be updated. The deadline of submission of expressions of interest and other bidding milestones will be adjusted accordingly,” Fernandez has stipulated in a notice to the interested CSP participants.
This bidding for new supply capacity will account for the future supply requirements of Meralco – primarily to serve its captive customers or those end-users who cannot exercise yet their power of choice under the flourishing Retail Competition and Open Access (RCOA) policy in the industry.
Given that the PSA is being solicited through competitive bidding, it is highly expected that the power rate to be cornered from the power generator-bidders would be the cheapest when reflected in the bills of consumers.