PCC hits snag in Meralco power bids

The Department of Energy (DOE) has yet to issue a Certificate of Conformity (COC) for over 1,000 megawatts (MW) of Manila Electric Co. (Meralco)’s power supply agreements, as the agency awaits clarifications from the Philippine Competition Commission (PCC) on the results of its review.

Newly appointed Energy Secretary Sharon Garin said Meralco must first address observations raised by the PCC before the DOE can move forward.

“There are observations by the PCC, so they need to comply with the recommendations of the PCC,” Garin told reporters at a media briefing on Wednesday.

She confirmed that the DOE has already communicated with Meralco and relayed the PCC’s position.

“We have already written Meralco the response... we sent them the stance of the Philippine Competition Commission,” she said.

Asked if the procurement process can proceed, Garin said: “It depends on the response to the observations of PCC, but as of now, not yet.”

The DOE earlier said it was holding off on issuing a COC for three Meralco CSPs: a 200-MW renewable baseload contract, a 600-MW baseload supply, and a planned 450-MW mid-merit agreement.

The DOE deferred action until both the PCC and the Energy Regulatory Commission issued their respective comments. He explained the department is proceeding with caution to avoid conflicting regulatory positions.

To recall, Meralco Senior Vice President and Head of Regulatory Management Jose Ronald V. Valles said the company’s CSPs are now routinely submitted to the PCC before any filing with the DOE.

He added that the launch of the 450-MW mid-merit supply procurement is targeted to happen by the third quarter, pending DOEapproval of the Terms of Reference.