TRO vs Meralco power supply bidding extended to 20 days

MANILA, Philippines — The temporary restraining order (TRO) issued against Manila Electric Co.’s (Meralco) bidding for two new power supply deals has been extended to 20 days from the initial 72 hours, the Taguig Regional Trial Court’s order showed.

In its order issued on Aug. 2 but made public over the weekend, the court said the TRO against the power distributor’s bidding would be extended after evaluating affidavits and sworn testimony provided by the plaintiffs, composed of operators of the Malampaya gas project.

The Pangilinan-led power distributor giant had set bid submission deadlines for the 600 megawatts (MW) and 400MW contracts on Aug. 2 and 9, respectively, through Competitive Selection Process (CSP).

However, the consortium operating the Malampaya gas field—Prime Energy, Prime Oil and Gas Inc, UC38 LLC, and the Philippine National Oil Exploration Corp—filed a complaint against Meralco over the planned bidding, alleging the indigenous natural gas could suffer an adverse impact if pushed through, with the country’s energy security also at risk.

Meralco “virtually waived its right to reply when it presented no evidence to overturn the finding,” the court said, pertaining to the earlier TRO it granted.

READ: Taguig court stops bidding for Meralco power supply contracts

“The extension given is without prejudice to the resolution of the merits, of the Complaint which shall be threshed out in a full-blown trial. Let further proceeding for the prayed Writ of Preliminary Injunction be set on August 28, 2024, at 2:00 in the afternoon,” it added.

READ: Lawyer hits TRO vs Meralco power supply bidding

In court testimony, Prime Energy’s managing director and general manager Donabelle Kuizon-Cruz said that “unless the court permanently stopped the CSPs, power generating firms using imported LNG (liquefied natural gas) and coal would dominate the energy sector, defeating several government objectives—reduce pollution, lower power rates and promote local fuel industries.”

On the other hand, the SC38 Consortium said earlier that it seeks “clarity on its role in the energy market in the same way that generators and distribution utilities need clarity.”

“There are a number of conflicting policies relative to the prioritization of indigenous resources and its implementation as part of a Competitive Selection Process, among others,” it said.

“Upon market rules being clear and established, we can all fulfill our respective roles to propel the market forward and ensure long-term energy security beyond the next three years for a dependable, equitable, competitive, and reliable power sector,” it added.

Meralco has yet to reply when asked for comments.

In a previous statement, Meralco stressed it was “ our mandate to ensure that we conduct these in a timely manner, as delay will expose our consumers to unnecessary burden in the amount of billions of pesos in the form of higher power rates.”