The country’s largest power generation companies are lining up for Manila Electric Co.’s (Meralco) 600-megawatt (MW) supply contract, setting up a bidding contest that could help deliver more competitive electricity rates as users clamor for cheaper power.

A total of nine generation companies joined the Tuesday pre-bid conference for Meralco’s competitive selection process (CSP), including First Gen Corp.’s Energy Development Corp. ; Aboitiz Power Corp.‘s GN Power Mariveles and Therma Luzon Inc.; San Miguel Global Power’s Limay Power, Mariveles Power Gen Corp., Masinloc Power and Sual Power; Semirara Mining and Power Corp.’s Southwest Luzon Power Generation Corp.; and Panay Energy Development Corp. of Global Business Power.

Power supply agreements

Meralco is seeking 300 MW of baseload capacity starting February 2028 and another 300 MW beginning February 2029 under separate 15-year power supply agreements.

The utility has set 1 September as the deadline for bid submissions.

Meralco said the CSP will be technology-neutral, allowing all generation technologies that satisfy the technical and commercial requirements to participate in line with the Department of Energy’s energy mix policy.

Reliable power at competitive rates

The utility said procuring supply through an open and competitive bidding process based on least-cost parameters is intended to secure reliable power at competitive rates for customers.

Under existing rules, distribution utilities may enter into power supply agreements only after conducting a CSP that attracts at least two qualified bids.

Direct negotiations with suppliers are permitted only after at least two failed bidding rounds.