Manila Electric Co. (Meralco) is seeking government approval to launch a new round of competitive bidding for electricity supply as the country’s largest power distributor moves to plug potential deficits in its portfolio.

Ronald Valles, Meralco's senior vice president and head of regulatory management, said the utility is awaiting the Department of Energy’s (DOE) clearance to proceed with the competitive selection process (CSP) for the 300-megawatt requirement.

The planned auction is intended to take place within the year, though the timeline remains contingent on the DOE finalizing approvals for several other pending procurement tranches.

“If I’m not mistaken, we have a 300-MW… This year should be the conduct of the CSP, but we cannot proceed unless and until the DOE approves the first three [other supply procurement plans],” he said.

Meralco has already submitted filings for CSPs covering 600 megawatts, 900 megawatts, and 450 megawatts of supply. These filings are part of the revised Power Supply Procurement Plan designed to balance diverse demand-side and supply-side resources.

Valles, however, expressed concern that administrative bottlenecks could push back the commercial operation dates of new power projects, noting that the company has repeatedly followed up with the department through both written and verbal communications.

The regulatory delay stems in part from an ongoing review that involves coordination with the Philippine Competition Commission.

Valles noted that the company hopes to proceed immediately upon receiving the green light to avoid the “several months of delay” associated with refiling applications. Any further lag in the bidding process could tighten thin supply margins as the country’s energy demand continues to scale alongside economic growth.

To manage immediate needs, Meralco is currently relying on an extension of its 1,000-megawatt contract with the Sta. Rita natural gas plant. While the Energy Regulatory Commission recently granted the second interim extension for that deal to safeguard the grid during the high-demand summer months, the arrangement is set to expire in June.

Should the formal bidding process face further setbacks, Valles said the utility will explore an emergency power supply agreement (EPSA). These short-term contracts allow distributors to bypass the lengthy CSP process to secure immediate capacity from generators.

While typically used as a last resort, EPSAs serve as critical buffer to prevent Meralco from being overly exposed to the Wholesale Electricity Spot Market, where prices often spike during periods of low reserves.