Limay Power, Inc., operated by SMC Consolidated Power Corp., will be providing 400-megawatt, or MW, of interim supply for the Manila Electric Co., or Meralco.

Meralco announced on Tuesday that Limay Power submitted the best bid through a competitive selection process, or CSP.

The Ramon S. Ang-led company offered a total headline electricity rate of Php 6.2708 per kilowatt-hour, or kWh, inclusive of value-added tax, or VAT, and line rental, for the entire 400-MW base load requirement.

The other generation company, Masinloc Power Co. Ltd., also an SMC-affiliate, submitted the next best bid of P6.2957 per kWh, VAT and line rental inclusive, for 195-MW capacity.

Both offers are compliant with the P6.3512 per kWh reserve price set for the bidding.

According to Meralco’s Bids and Awards Committee for Power Supply Agreements, or BAC-PSA, the submissions passed the criteria contained in bidding documents and pre-qualification evaluation.

The BAC-PSA is also set to conduct a post-qualification evaluation and submit its recommendation and report to Meralco’s Board of Directors for approval of the best bid as the winning power supplier before the issuance of a Notice of Award.

Aligned with Department of Energy, or DoE Department Circular No. DC2023-06-0021, Series of 2023, and Energy Regulatory Commission, or ERC, Resolution No. 16, Series of 2023, Meralco's recent CSP was conducted openly and transparently.

The Terms of Reference, or TOR, was reviewed and approved by the DoE to ensure alignment with Meralco's Power Supply Procurement Plan.

The PSPP, also approved by the DoE, addresses the need for additional capacity to augment supply to customers through an Interim Power Supply Agreement, or IPSA.

The IPSA, contingent upon regulatory approval by the ERC, will be enacted and remain valid until February 2025.