MANILA Electric Co. (Meralco) said on Monday that power plants utilizing the Malampaya gas field may participate in its bidding for 1,000 megawatts (MW) of power supply.
“It is important to clarify that power plants utilizing Malampaya gas are not excluded from participating in the bidding process. [T]hey are among the prospective bidders who have shown interest in submitting their offers,” Meralco Senior Vice-President and Head of Regulatory Management Jose Ronald V. Valles said in a statement.
The statement responds to the temporary restraining order (TRO) issued by Taguig Regional Trial Court (RTC) Branch 267 on Aug. 2, which extended the order’s duration to 20 days from three days.
The TRO stemmed from a petition for injunction filed by members of the Malampaya consortium — Prime Energy, UC38 LLC, Prime Oil and Gas, Inc., and the Philippine National Oil Company-Exploration Corp. — to stop Meralco’s competitive selection process (CSP) for 1,000 MW of new power supply.
“There exists an extreme urgent necessity for the writ as to warrant the issuance of a temporary restraining order… to prevent further damage to the plaintiffs’ interests, the government, and the environment,” Executive Judge Byron G. San Pedro said in a five-page order promulgated on July 31.
Meralco had earlier invited bids for a contract capacity of 600 MW, involving a 15-year power supply agreement targeted to start on Aug. 26, 2025, with a bid deadline originally set for Aug. 2, 2024. It also invited bids for an additional capacity of 400 MW to secure a contract, scheduled to start on Aug. 26, 2025.
Government regulations mandate distribution utilities to select the most cost-effective electricity supply through a CSP.
Mr. Valles said that the company has received the court order on the TRO extension initiated by the consortium, which he noted “does not participate in the CSP as it does not directly supply to or contract with Meralco.”
He said Meralco is reviewing the court order, including its potential impact on the bidding process that may be delayed and could lead to higher power rates.
Mr. Valles also said that the biddings are conducted “in strict accordance” with the rules set forth by the Department of Energy (DoE) and the Energy Regulatory Commission (ERC).
“Notably, the DoE has granted a Certificate of Conformity for Meralco to proceed with the CSPs, and neither the DoE nor the ERC has identified any irregularities in the Terms of Reference for the 1,000-MW CSPs,” he said.
He noted that the DoE and ERC are the administrative agencies that have primary jurisdiction over the bidding processes.
“Both play a crucial role in setting the regulatory framework and ensuring the integrity of the competitive selection process for power supply,” he said.
“Meralco appreciates the public’s understanding as we navigate through this legal process. We assure our customers and stakeholders of our continued efforts to advocate for their best interests and secure a stable and least-cost power supply,” Mr. Valles said.
Terry L. Ridon, convenor of think tank Infrawatch PH, said that the disruption poses “significant risks to the stability and fairness of the power sector, potentially leading to higher electricity costs and unreliable service for millions of consumers.”
“It is baffling and concerning that entities with no qualifications or direct stake in the power generation industry are being allowed to challenge these proceedings,” Mr. Ridon said in an e-mailed statement on Monday.
“This is a clear overreach and should be dismissed outright. Their interference is unwarranted and detrimental to the interests of consumers who rely on a stable and competitive power market,” he added.
ANOTHER BIDDINGMeanwhile, PacificLight Power Pte. Ltd., the Singapore-based subsidiary of Meralco PowerGen Corp. (MGen), is eyeing participation in a bidding to build, own, and operate a new gas power plant.
“We might participate in the bidding for the new plants that Singapore wants to build — two 600 MW units — so we might bid for one, 600 MW,” MGen Chairman Manuel V. Pangilinan told reporters last week.
In June, the Energy Market Authority (EMA) of Singapore launched a request for proposals for new generation capacity to meet the country’s growing electricity demand. EMA invited the private sector to build, own, and operate two new hydrogen-ready combined cycle gas turbine generating units to be ready by 2029 and 2030, respectively. Each generating unit is expected to be at least 600 MW in capacity.
For the first half of the year, energy delivered by PacificLight was down by 1% to 2,875 gigawatt-hours as it conducted efficiency improvements in early months of 2024.
MGen President and Chief Executive Officer Emmanuel V. Rubio said that PacificLight was granted the right to build, own, and operate a 100-MW hydrogen-ready gas turbine in May by EMA.
Based on its website, PacificLight currently owns an 800-MW liquefied natural gas-fired power plant in Jurong Island, Singapore.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera and Chloe Mari A. Hufana
