Industry group supports Meralco supply contracts

By Alena Mae S. Flores – September 27, 2019 at 08:35 pm
from manilastandard.net

The Federation of Philippine Industries lauded the successful agreements to supply Manila Electric Co. with separate 1,200 megawatts and 500 MW effective December 26, 2019.

“FPI welcomes the news of this much-needed additional power, to meet the growing demand of our country. We welcome the entry of any and all generation companies interested in contributing to the grid, in order to create a more secure power supply situation for all industries, and ultimately, all consumers,” FPI chairman Jesus Arranza said in a statement.

The group, a prime mover of Philippine industries, expressed support for the Energy Department circular requiring distribution utilities to procure power through the competitive selection process, or bidding.

Meralco’s CSP was administered by the Third-Party Bids and Awards Committee that was constituted pursuant to the department circular. Energy officials were also present as observers during the CSP.

“The organization believes the correct and proper process was indeed prescribed by the DOE, and we thank the government for its hands-on approach with the CSP. As the entire process was personally witnessed by representatives of the DOE, industries can rest assured that the results are fair, transparent, and most especially beneficial to customers and consumers of power,” Arranza said.

After the successful conduct of the CSP, Meralco signed PSAs with three companies for the supply of a 500 MW megawatt of mid-merit capacity effective December 26, 2019 for a term of five years.

Meralco signed the PSAs with First Gen Hydro Power Corp., Phinma Energy Corp. of the Ayala Group and South Premiere Power Corp. of San Miguel Corp. after their respective offers were declared to be the best bids by the third party bids and awards committee during a bidding on September 11.