Meralco evaluating impact of TRO on bidding, rates
By Lenie Lectura – August 6, 2024
from Business Mirror
The Manila Electric Co. (Meralco) said Monday it will seek legal remedies after a local court issued a 20-day temporary restraining order (TRO) against its competitive selection process (CSP) for its supply requirement of 1,000 megawatts.
“We are reviewing the court’s order and consulting with our legal counsel to determine our next steps. This includes evaluating potential delays in the bidding process, which could, unfortunately, lead to higher power rates for our customers.
Despite these challenges, Meralco remains steadfast in our commitment to comply with all applicable laws and regulations,” said Meralco Senior Vice President and Head of Regulatory Management Jose Ronald V. Valles.
The utility firm said it already received the court order extending the TRO which was initiated by the Malampaya consortium which is composed of Prime Energy, UC 38 LLC, Prime Oil and Gas Inc., and the Philippine National Oil Co.-Exploration Corp. (PNOC-EC).
“In line with the principle of sub judice, Meralco will refrain from commenting on the merits of the ongoing legal proceedings,” Valles added.
Valles noted that all CSPs for its supply requirements are done in accordance with existing rules of Department of Energy (DOE) and Energy Regulatory Commission (ERC).
“Notably, the DOE has granted a Certificate of Conformity for Meralco to proceed with the CSPs, and neither the DOE nor the ERC has identified any irregularities in the Terms of Reference (TOR) for the 1000MW CSPs.
By law, the DOE and ERC are the administrative agencies that have primary jurisdiction over CSP or bidding processes. Both play a crucial role in setting the regulatory framework and ensuring the integrity of the competitive selection process for power supply,” he said.
In its order issued August 2, Judge Antonio Olivete of Taguig Regional Trial Court (RTC) Branch 267 extended the TRO duration to 20 days after evaluating affidavits and sworn testimony given by the petitioner who warned of the biddings’ disastrous impact on Malampaya gas and the future of the country’s energy security.
“Wherefore premises considered, this Court resolves as it hereby resolves to EXTEND the previously issued 72-HOUR TRO to 20-day TRO enjoining the Manila Electric Company, and all other persons, agents, individuals, employees and representatives acting under its instructions and authority from conducting its competitive bidding selection process (CSP), under its current Terms of Reference, including the receipt of bids, the awards and the implementation of any award arising therefrom,” the order read.
The 72-hour TRO was issued last July 31 by Executive Judge Byron San Pedro of Taguig City RTC-Branch 15-FC.
The TRO was in response to a petition for injunction filed by operators of the Malampaya gas project against Meralco’s CSP for 600MW baseload capacity scheduled last August 2 and the 400MW mid-merit capacity originally scheduled on August 9.
Court records, however, showed that the bid submission deadline for the 400MW capacity is scheduled on September 9.
