Power utility giant Manila Electric Co. (Meralco) is seeking bidders for its competitive selection process (CSP) on 180-megawatt capacity procurement that it will be undertaking to augment its electricity supply during the summer months.

In a notice to bid issued via its third party bids and awards committee (TPBAC), the company stated that it is “inviting all interested parties to submit their offers for the contract.”

The winning power supplier or power generator in the auction process will be underwriting a power supply agreement (PSA) with Meralco – and to which the parties will be filing jointly with the Energy Regulatory Commission (ERC) for approval.

“Interested bidders have until March 31 to submit their expressions of interest,” the power firm noted; as it also specified that a pre-bid conference will be held on April 7, to provide a venue to the qualified bidders to raise their questions relative to the CSP process and terms on that capacity procurement.

The bid submission deadline is slated on May 4; and the winning offer -- often the lowest-priced tender -- will also be announced on the same date. A post-qualification process will follow prior to the signing of a PSA between Meralco and the winning power provider.

The utility firm explained that this new capacity tendering will be part of the 350-megawatt supply portfolio that Meralco will be requiring to beef up its capacity during the summer months – given that demand is anticipated to be on drastic spikes during this period.

Meralco emphasized that the additional supply “is meant to cover for the output of gas plants that are affected by Malampaya facility’s continued inability to supply adequate natural gas fuel.”

The initial 170MW capacity was awarded to South Premiere Power Corp., a subsidiary of SMC Global Power Holdings Corp. of the San Miguel Group -- which submitted a winning tender in the Feb. 2, 2022 CSP of Meralco. The power supply deal is now pending for ERC approval.

Electricity supply in this year’s summer months is seen teetering on the edge of service interruptions given the very thin reserves that the power system can lean on if there will be sudden surge in demand; and if the recurrent problem of generating facilities’ forced outages would strain the power system again.

Apart from highly probable rotational blackouts, Filipino consumers are also being flagged this early of soaring electricity bills due to the surge in prices of the fuel commodities used for electricity generation.

The players in the power industry were given stern warning that they shall not plunge power grids into blackouts or service interruptions, especially during the May 9 elections, because that could compromise the integrity of the poll results.