A tailor-made TOR?

"We support the call of the DOE for more inclusive terms and a more competitive bidding process."

The Department of Energy has recently asked Meralco to relax the conditions of its Terms of Reference for the supply bidding for the distribution utility’s massive 1,200 MW energy supply requirement. 

Power generators have walked away from this massive supply contract after Meralco stipulated that the new plant should utilize HELE (high efficiency, low emission) technology. However, only one power plant can meet the HELE standard, the Atimonan One, which is owned by the utility’s sister company Meralco Power Generation Corp. (MGen), which is now under construction. 

Even San Miguel Corporation, which won a big chunk of the earlier bidding of energy supply for Meralco, said the terms must be relaxed in order for other players to join and compete for the contract. It earlier wanted to join the bid for the 1,200 MW but after seeing the limiting terms, it eventually walked away.  

The Competitive Selection Process (CSP) regime for power distributors like Meralco and even electric cooperatives gives consumers a great advantage, as different power generators can now bid for supply contracts by offering the most competitive prices and the best service. Cheaper generation cost, will definitely trickle down to our monthly electricity bill. 

And since generation costs are supposed to be passed on, the utilities are supposed to have no interest other than getting the lowest cost supplier. 

The bidding for the 1,200-MW greenfield supply (greenfield means new power plant that has to be constructed brand new), has already failed as only Atimonan One made a bid. Another round of failed bidding will mean Meralco can enter into a negotiated contract with its own sister company MGen. 

Some reports have already shown that although HELE technology is more efficient and has lower emissions, its energy output is more expensive that the usual “clean coal” circulating fluidized bed coal power plants. 

We support the call of the DOE for more inclusive terms and a more competitive bidding process. More players in the game will only mean lower costs and better service. And that is what we are all looking for as consumers. 

Maybe Meralco can help clear things out in today’s Congressional hearing.

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While critics of this administration are having a heyday using the series of earthquakes to hit Central and Eastern Mindanao to pounce on President Rodrigo Duterte, describing the calamities that struck the southern part of the country as some sort of retribution, other countries, particularly China have started chipping in contributions for the relief and rehabilitation of the families affected by the earthquakes.

While expressing its deepest sympathy to those affected families, the Chinese Government donated 3 million RMB (approximately P22 million) through its Embassy in the Philippines to aid the victims and support the disaster relief efforts by the Philippine government in Mindanao and help local residents return to normal life. 

In a statement released by the Chinese Embassy, China reiterated its support for the President saying that under his strong leadership, it is optimistic the Philippine people will overcome the disaster and rebuild their homeland as soon as possible.