The Manila Electric Company (Meralco) has received a positive response from the Department of Energy.
Last week, Energy Secretary Alfonso Cusi cited that there was already a confluence of minds between his agency and the power distributor.
Both parties have agreed on the competitive selection process’s (CSP) terms of reference (TOR).
This bidding operation is for the 1,200-megawatt (MW) greenfield capacity of Meralco.
Philippine daily newspaper The Philippine Star reported that Meralco would launch its CSP in March this year.
The company had performed this process for the 1,200-MW greenfield capacity in September 2019.
However, that bidding action was a failure after only one firm, the Atimonan One Energy Incorporated, presented an offer.
The Atimonan One Energy is a part of Meralco Powergen Corporation or MGen.
Hence, the DOE directed the power distributor to open another round of its CSP due to the previously unsuccessful offering of bids.
This bidding process was open to both new and old power plants. The government agency supported the competition.
They viewed that this manner would facilitate it. Plus, the DOE informed Meralco that it would benefit by obtaining the least cost of power for its customers.
Then, in December last year, the power company began to solicit bids for the 1,200-MW greenfield capacity’s second round of CSP.
By 2024, this process is necessary with eased regulations. Ray Espinosa is the chief executive officer and president of Meralco.
He relayed that they are confident with the manner that his company developed the TOR of the CSP.
Espinosa said that the document would likely entice a favorable amount of qualified and genuine bidders.
The Meralco chief executive officer affirmed that they desire new capabilities to come in at the soonest possible time.
Furthermore, Espinosa cited that they must motivate investors to erect new plants.
Therefore, it became significant to contrive an effective TOR. In this way, they could lure more bidders, he explained.
Espinosa pointed out that Meralco will publish the TOR right away once they address the replacement power issues and zero outage allowance.
He mentioned that the next step after that would be the performance of the bidding procedure within the time-frame indicated in the DOE’s circular.
On Monday, February 24, 2020, the Manila Electric Company (PSE: MER) closed at P262.00 per share.
This last trade price of the company’s stock is down by 8.00 or 2.96 percent. The total turnover value reached P96,392,744.00.
The 52-week high of Meralco is at P391.00. Meanwhile, the Philippine Stock Exchange recorded its 52-week low at P256.00.
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