Meralco on Monday announced the successful bidding for the contract capacity of 1,200 MW (NET) to supply Meralco effective 26 December 2019 for a 10-year term.
In a statement, Meralco said the bidding was done in accordance with the Department of Energy (DoE) Circular requiring distribution utilities to procure power through a competitive selection process (CSP). The CSP was administered by the Third-Party Bids and Awards Committee (TPBAC) constituted pursuant to the DoE Circular.
The distribution utility informed the public that, after the opening and evaluation of the bids, the TPBAC declared the bids submitted by PHINMA Energy Corporation, San Miguel Energy Corporation, and South Premiere Power Corporation to be the best bids.
The TPBAC made the findings based on a non-discretionary “pass/fail” assessment for completeness after they determined there was no failure of bidding.
Pursuant to the instructions to prospective bidders (IPB), the best bids will now undergo post-qualification. The Third-Party Bids and Awards Committee is expected to issue the respective notices of award in favor of those who satisfactorily passed post-qualification on 10 September, 2019, to be followed by the signing of the power supply agreements (PSA) with Meralco within the week.
PHINMA Energy Corporation’s bid was for contract capacity of 200 MW with an all-in headline rate (VAT inclusive) of 4.7450 P/kWh and Computed all-in LCOE (VAT Inclusive) of 4.8849 P/kWh.
San Miguel Energy Corporation’s bid was for 330 MW at all-in headline rate (VAT inclusive) of 4.6314 P/kWh and Computed all-in LCOE (VAT Inclusive) of 4.9299 P/kWh.
South Premiere Power Corporation’s bid was for 670 MW and had an all-in headline rate (VAT Inclusive) of 4.6314 P/kWh and Computed all-in LCOE (VAT inclusive) of 4.9300 P/kWh.
These bids collectively totaled 1,200 MW in contract capacity.
Meralco said these bids are lower than the all-in headline rate (VAT-inclusive) of 4.9196 P/kWh and computed all-in LCOE (VAT-inclusive) 5.3694 P/kWh reserve prices which it pre-determined based on recently ERC-approved contracts and disclosed only upon opening of bids.
Meralco declared that the successful CSP will ultimately result in least cost to consumers. It clarified that the all-in rate already includes line rental and VAT, and the cost of replacement power for all plant outages.
“The generator companies will also be liable to pay a fine if they are unable to deliver power, which will be used to reduce the generation cost to the consumers,” Meralco said.