PANAY Energy Development Corp. (PEDC) filed the lowest bid for the 15-year 70-megawatt (MW) supply deal during Manila Electric Co.’s, (Meralco) competitive selection process (CSP).
In a statement on Sunday, the third-party bids and awards committee (TPBAC) that oversaw the selection on Friday said PEDC offered a total headline rate of P2.991 per kilowatt-hour (kWh) and a total levelized cost of electricity (LCOE) rate of P2.948 per kWh.
PEDC’s offer was below Meralco’s reserve price of P5.0268 per kWh for the headline rate, and P3.7898 kWh for the LCOE price.
There were initially four power generation companies that bid out the supply deal until Quezon Power Philippines Ltd. (QPPL) withdrew from the bidding process.
The committee said the other companies that submitted offers were SEM-Calaca Power Corp. (SCPC) with a P4.8737 per kWh headline rate and Therma Luzon, Inc. (TLI) with P4.7 per kWh. Both companies offered rates above the LCOE reserve price at P5.2894 per kWh and P5.1650 per kWh, respectively.
“The TPBAC complied with its mandate to conduct the bid in an open and transparent manner to achieve the least cost of electricity, in accordance with the Department of Energy’s (DoE’s) Department Circular No. 2018-02-0003 on CSP,” said TPBAC Chairman Ferdinand A. Domingo.
The selection process was based on a pass/fail test of the companies’ submitted qualification documents for completeness.
After winning the bid, PEDC will undergo a post-qualification evaluation before TPBAC can issues a notice of award.
“As a regulated entity, Meralco has conducted its business in full compliance with all rules and regulations issued by the Energy Regulatory Commission (ERC) and the [DoE],” said TPBAC Secretariat and Meralco Vice-President and Head of Utility Economics Department Lawrence S. Fernandez in a statement.
In 2019, the Supreme Court ruled that Meralco and other power distributors must undergo a competitive selection process in power supply procurement.
The electricity distributor is set to carry out another bid through a CSP for a 170-MW power supply to ensure next year’s electoral process will not be marred by power interruptions.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Marielle C. Lucenio
