Limay Power submits best bid for Meralco’s 400-MW supply
By Alena Mae S. Flores – February 27, 2024, 7:35 pm
from manilastandard.net
Power retailer Manila Electric Co. (Meralco) said Tuesday said it secured the best bid from Limay Power Inc. through a competitive selection process (CSP) for its 400-megawatt (MW) interim supply requirement.
San Miguel Corp.-owned Limay Power offered a total headline electricity rate of P6.2708 per kilowatt-hour (kWh), inclusive of value-added tax and line rental, for the entire baseload requirement during the bid submission.
Meralco said in a statement three bidders initially expressed interest to participate in the CSP, but only two submitted their qualification documents, technical proposal and bid price.
It said the other generation company, Masinloc Power Co. Ltd., submitted the next best bid of P6.2957 per kWh, VAT and line rental inclusive, for 195-MW capacity.
Both offers are compliant with the P6.3512 per kWh reserve price set for the bidding of Meralco’s interim supply for the dry months.
The other interested bidder First NatGas Power Corp. of First Gen Corp. did not submit a bid.
The submissions passed the criteria contained in bidding documents and pre-qualification evaluation, according to the Bids and Awards Committee for Power Supply Agreements (BAC-PSA).
The BAC-PSA will conduct a post-qualification evaluation and submit its recommendation and report to Meralco’s board for approval of the best bid as the winning power supplier prior to the issuance of a notice of award.
“The conduct of this CSP is in accordance with DOE Department Circular No. DC2023- 06-0021, Series of 2023 and Energy Regulatory Commission (ERC) Resolution No. 16, Series of 2023 which require that the bid be conducted in an open and transparent manner,” Meralco said.
Meralco said the CSP’s terms of reference (TOR) conform to its power supply procurement plan (PSPP), which was reviewed and approved by Department of Energy (DOE).
The PSPP, which was also approved by the DOE, considers the need for additional available capacity to augment supply to customers through an interim power supply agreement (IPSA).
The resulting IPSA, subject to regulatory proceedings, will be implemented once approved by the ERC and will be effective until February 2025.
