Meralco bares best bids for new supply deals

MANILA, Philippines  —A subsidiary of conglomerate San Miguel Corp. (SMC) gave the best offer in an auction for a total 1,200 megawatts (MW) of power-generating capacity, meant to meet growing demand amid the El Niño climate pattern, according to Manila Electric Co. (Meralco).

Meralco on Wednesday announced that South Premiere Power Corp. (SPPC) offered the lowest price for the full 1,200-MW baseload requirement at P7.0718 per kilowatt-hour (kWh).

Baseload refers to capacity and supply that is deployed throughout the business day.

An unincorporated joint venture of SMC’s San Roque Hydropower Inc. and Limay Power Inc. submitted the next-best bid at P7.1006 per kWh for 150 MW.

Lopez-led First Natgas Power Corp., meanwhile, offered a rate of P8.4489 per kWh for a capacity of 210 MW.

READ: Meralco seeks new suppliers for 1,200 MW of electricity

The bids and awards committee that is handling Meralco’s power supply agreements will first conduct a postqualification evaluation for the board of directors’ approval before a notice of award is issued to SPPC, the distribution giant said in a statement.

Back in 2019, SPPC and San Miguel Energy Corp. won contracts to cover a portion of the total capacity, or 670 MW and 330 MW, respectively.

READ: ERC approves termination of Meralco, SMC deals

Canceled contracts

In 2022, both suppliers filed for ending the contracts after the Energy Regulatory Commission denied their joint motion for price adjustment, which would have allowed them to recover about P5 billion in losses incurred in the first five months of that year amid high fuel prices.

Meralco said this issue is still pending resolution, but the company again sought new suppliers for the canceled contracts in November 2023 due to impending demand growth as the warm summer months roll in.

Also, earlier this month, Meralco announced that the subsidiaries of SMC and Aboitiz Power Corp. were declared the best bidders for a separate 1,800-MW supply auction.

READ: SMC, Aboitiz units submit lowest bids for 1,800-MW Meralco power supply

According to Meralco, SMC units Mariveles Power Generation Corp. and Excellent Energy Resources Inc. offered to provide 300 MW and 1,200 MW, respectively.

GNPower Dinginin Ltd. Co., meanwhile, offered to deliver the remaining 300 MW.

Further, Meralco is currently bidding out contracts for 660 MW of capacity, which will likewise augment supply in the coming months.