Senator Calls for Delay in Meralco’s 600-MW Power Supply Bidding

Senator Alan Peter Cayetano has urged a postponement of the upcoming bidding for Meralco’s 600-megawatt (MW) power supply requirement, scheduled for August 2, amid concerns over the fairness of the process.

Concerns Over Fairness

In a statement, Cayetano questioned the terms of reference (TOR) set by Meralco for the competitive selection process (CSP) for its 600-MW baseload requirement. He claimed that the TOR is unfair to older power suppliers, particularly those using fuel from the Malampaya gas field.

“I think you should postpone August 2 and look into, sort this out first,” Cayetano said. He also raised concerns about promoting the use of indigenous gas in the Philippines and highlighted a specific phrase in Meralco’s TOR—“if the plant is more than 10 years old”—which he argued effectively disqualifies older power plants from participating in the CSP.

Addressing High Power Costs

Cayetano emphasized the need to address the high cost of power affecting both investors and consumers, suggesting that the current TOR may not support this goal.

Meralco’s Response

In response, Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga assured that the power distributor strictly adheres to government requirements and standards, securing prior approval from the Department of Energy (DOE) for their Power Supply Procurement Plan and the TOR for each CSP.

“These TORs also considered suggestions from the Energy Regulatory Commission (ERC) Chairperson before they were published,” Zaldarriaga added. He emphasized that there is no preferential treatment in Meralco’s CSPs and that contracts are awarded to the lowest compliant bidder.

For the 600-MW requirement, eight companies, including First Gas Power Corp. and First NatGas Power Corp., which source fuel from Malampaya, have expressed interest in submitting offers. Other interested companies include Mariveles Power Generation Corp., Masinloc Power Co. Ltd., GNPower Dinginin and Therma Luzon Inc., Southwest Luzon Power Generation Corp., and Quezon Power (Philippines) Limited Co.

“Just like all our other CSPs, we hope that all these companies will submit their offers to maximize competition. This will allow us to secure the best bids and least-cost supply that will really benefit our customers,” Zaldarriaga said. He also noted that all resulting Power Supply Agreements (PSAs) will require ERC review and approval before implementation.