A Call for strict compliance in Meralco Competitive Selection Process
February 14, 2021According to recent news reports, Meralco, the biggest electric distribution utility (DU) in the country, is bidding out 1,800 megawatts of electricity supply for the next 20 years to meet projected demand.
This tender is following the “Competitive Selection Process” (CSP) as mandated by the Department of Energy. The CSP is the required process of bidding for determining the lowest priced power supply from eligible power generation companies in compliance with the Department of Energy (DOE) and the Energy Regulatory Commission’s (ERC) regulations.
Nine (9) companies were reported to have participated in the CSP. However, three were disqualified in the pre-qualification process because of some deficiencies found by the Third-Party Bids and awards Committee (TBAC) in the submitted pre-qualification documents.
Of particular interest is one of the disqualified companies named in a published news report as Kingstone Energy, a Chinese company and a new player that is proposing a new 1,200 MW coal-fueled power plant project.
Compared to the other bidders and even those that were disqualified, there are questions on their eligibility to participate in the bidding such as their compliance in terms of licenses and permits and the fact that Kingstone Energy is not even in the list of power plants allowed to operate after the effectivity of the DOE’s moratorium on new or “greenfield” coal power plants. The DOE moratorium aims to curb harmful emissions and allow the entry of new technologies that are clean and indigenous.
This policy effectively blocs the coal-power plant of Kingstone from even happening and puts to question how they will be able to deliver on a power supply agreement they are bidding for.
So why are they pushing on with this CSP when they don’t have an approved power plant project? How can they even deliver considering their present status? Are there powerful backers that believe they can exert their influence over the DOE and ERC to reverse the decision of the TBAC to disqualify Kingstone?
These are disturbing questions that bring to mind the possibility of another incursive move of China into our strategic infrastructure. First it was the ownership, though not (yet) controlling interests in the country’s power transmission franchise, then it was the bigger minority ownership in the third telco. Will the 1,200 MW power supply needed by Meralco’s consumers be next?
The Disqualified companies are expected to file protests and will go thru the due process in compliance with CSP rules. What matters is that we have a fair and orderly CSP that will be beneficial to our national interest and the consumers.
We call for close vigilance and strict compliance to the CSP process. We urge DOE and the ERC to be steadfast in ensuring that the power supply agreements that will eventually be awarded will find the most deserving and most reliable power generation company. As consumers trying our best to get thru the daily difficulties of this crisis, we need affordable and uninterrupted electricity to power the digital technologies that are now our indispensable tools.