Meralco: SMC unit submits lowest bid

BY LENIE LECTURA – FEBRUARY 2, 2022
from Business Mirror

South Premiere Power Corp. (SPPC), a power arm of conglomerate San Miguel Corp. (SMC), submitted the lowest bid for the contract to supply 170-megawatt (MW) peaking power to the Manila Electric Co. (Meralco).

During the competitive selection process (CSP) held February 2, the Third-Party Bids and Awards Committee (TPBAC) declared SPPC’s offer of P6.8198 per kWh as the best bid.

SPPC’s offer was below the P7.2989 per kWh Total Delivered Headline reserve price, which includes value-added tax and other charges.

This CSP round, which involves a contract from February 26, 2022 to July 25, 2022, is part of Meralco’s preparations to ensure that there will be sufficient, reliable and cost-competitive supply for hot dry season months when demand is historically high.

“Upon the issuance of a notice of award, Meralco will enter into a PSA [power supply agreement] with SPPC, which will then be submitted for approval by the Energy Regulatory Commission.

This PSA will help ensure availability of supply, which is especially critical in the upcoming dry months and the National and Local Elections,” said Meralco Head of Regulatory Management Office Jose Ronald V. Valles.

The TPBAC also received an offer from Global Business Power Corp., through its subsidiaries Panay Energy Development Corp., Toledo Power Co., and Panay Power Co.. The offer price was P9.7777 per kWh, exceeding the reserve price set for the bidding.

Therma Luzon Inc. initially expressed interest but withdrew its participation in this CSP round.

The TPBAC said the committee’s findings were based on a Pass/Fail assessment of the qualification documents for completeness. It will now conduct a post-qualification evaluation prior to the issuance of the notice of award.