Cusi: DoE monitoring power supply auctions

Energy Secretary Alfonso Cusi said Friday the agency is carefully monitoring the competitive selection process of distribution utilities and electric cooperatives to ensure compliance with the policy.

“The DoE monitors the CSP being conducted and it also participates as an observer in the CSP activities of the DUs from the pre-bid conference up to the issuance of the Notice to Proceed,” Cusi said.

The energy chief added Manila Electric Co.’s recent invitation to bid for a total of 2,900 megawatt passed through and was reviewed by the department.

“Meralco submitted its PSPP (Power Supply Procurement Plan) to DoE and the DoE ensures its consistency with the DDP (Distribution Development Plan),” he said.

The PSPP refers to the distribution firm’s plan to acquire acquisition a variety of demand-side and supply-side resources to cost effectively meet the electricity needs of its customers. 

The PSPP is an integral part of the distribution utilities’ DDP.

“The strict implementation of the CSP Policy, which was mentioned in the Supreme Court decision in GR No. 227670, is anchored on the principles of transparency and consumer welfare promotion; hence, the DoE will continue to monitor how all the DUs comply with the policy,” Cusi said.

Meanwhile, Cusi said distribution utilities had the option to fully contract or secure power from the Wholesale Electricity Spot Market, the country’s trading floor of electricity. 

“Based on data, Meralco will be procuring power from WESM despite the PSA to be procured though CSP,” he said.

Cusi said the DoE, based on the DDP and the PSPP, advised Meralco to increase the megawatts it would procure. Meralco is looking at a fourth CSP to add to the combined 2,900 MW of capacity that it sought bids.

Meralco issued a bidding notice for the supply of 500 megawatts of power capacity for its mid-merit requirements over five-year period.

Meralco also issued invitation to bid for the supply of 1,200 MW of power over a 20-year period from March 2024. Meralco sought bids for a base load supply whose power plant is expected to start commercial operations not earlier than the scheduled date of March 2024 for the first unit and full contract capacity by September 2024.

Meralco also published the first invitation to bid for the 10-year supply of 1,200 MW capacity for its base load requirement. Bidders were asked to supply Meralco with the capacity starting Dec. 26, 2019 up to Dec. 25, 2029. 

“The recommendation is also anchored on the need to encourage the build-up of more plants to supply the projected increase in the demand for the country’s growing economy,” said Cusi.