August 31, 2024 | 12:00am
Just recently, the Taguig Regional Trial Court junked a complaint for an injunction seeking to stop the Manila Electric Co. (Meralco) from holding a competitive selection process (CSP) or bidding for the procurement of an additional 1,000 megawatts for its power supply requirement.
Taguig RTC Judge Antonio Olivete, in a ruling issued last Aug. 18, dismissed the injunction bid filed by Prime Energy Resources Development BV, the operator of the Malampaya gas field, together with its consortium partners US 338 LLC of the Udenna Group, Prime Oil and Gas Inc. and the Philippine National Oil Company-Exploration Corp.
The CSP refers to the process where a power supplier is chosen to supply the electric power requirements of a distribution utility (DU) through a transparent and competitive bidding to secure a supply of electricity as a requirement to enter into power supply agreements or PSAs.
While the DUs have control over how they conduct the bidding, the government, through the Energy Regulatory Commission (ERC), has oversight over the regulatory side of the process.
Meralco has welcomed this recent court decision, allowing the utility firm to proceed with its bidding activities for supply requirements starting next year. The company said this would ensure that consumers will benefit from contracts that guarantee a stable power supply at a fixed cost.
The CSP truly lived up to its purpose as Meralco secured good offers during the bid opening for its 600 MW requirement last Aug. 27. The bidding was originally scheduled for Aug. 2 but did not push through due to a temporary restraining order issued by the court.
The good news for consumers is that the bidding, as expected, was competitive, with a total of six power generation companies submitting their offers.
According to Meralco senior vice president and regulatory management head Jose Ronald Valles, the transparency and competitiveness of Meralco’s bidding process were underscored by the fact that the majority of the price offers received were lower than the ceiling price set and that, in fact, the winning bidders’ offers were at least P1 lower than the reserved price (or the price set by Meralco).
Immediately after the bidding, Meralco revealed that the best bids came from Masinloc Power after it offered P5.60 per kWh for 500 MW of the supply requirement and GNPower Dinginin at P5.7392 per kWh for the remaining 100 MW.
Observers say that these are really good bids, especially considering that these are significantly lower than the current billings of First Gas for its San Lorenzo Plant at P7.55 per kWh.
To recall, the party that stopped this CSP was the consortium that exclusively sells the Malampaya gas to First Gas. In the end, First Gas decided not to participate in the bid submission, perhaps because the rates offered by the other bidders were quite a challenge to beat.
Nonetheless, what is clear here is that this CSP that Meralco conducted is a win for consumers.
If anything, this reflects that the government-mandated open and transparent bidding process is an effective and competitive mechanism for securing the necessary power supply in the most beneficial way for consumers—one that prioritizes affordability and availability of supply.
Beyond competitiveness, the transparency of the CSP should also be highlighted as it serves the interests of consumers. The bidding was open to observers, including consumer groups and even streamed online.
Meralco earlier emphasized that the CSP was carried out in accordance with the existing rules laid down by the Department of Energy and the ERC.
Valles said that the main objective of the CSP, which is to secure the least cost supply for our customers, has been achieved and that, hopefully, there will be no further delays as they work toward the immediate signing of the PSAs resulting from the 600 MW CSP.
Hopefully, there will be no more roadblocks, and it is now up to the ERC to ensure that there will be no more further delays and that the resulting power supply agreements from these biddings are reviewed and approved in a timely manner so that consumers can actually benefit from these efforts in terms of least-cost and sufficient supply.
Best place to work
DDB Group Philippines has recently been named by HR Asia as one of the “Best Companies to Work for in Asia.”
The HR Asia Awards acknowledge organizations identified by their employees as employers of choice, highlighting exceptional PR practices, high employee engagement and excellent workplace cultures across Asia. The awards are based on rigorous research and analysis of employee responses and company data.
The group was also earlier cited in London as The Best Place to Work in the Campaign Agency of the Year Global Awards, which recognizes inspiring leadership, management excellence, outstanding business performance and overall achievements in advertising and brand communications.
DDB Group Philippines, for the third consecutive year, was also recognized as the “Best Place to Work” winner at the prestigious Campaign Global Agency of the Year Awards 2023 held in London last June.
According to group chairman and CEO Gil Chua, the award underscores the company’s belief that kindness and integrity in leadership lead to exceptional client service and outstanding results and serves as a reminder that when people are prioritized and a nurturing environment is created, success naturally follows.
The company’s progressive work-from-home policies, commitment to gender pay equity and inclusive workplace culture have created an environment where creativity and innovation flourish.
The group’s chief culture officer and managing director, Anna Chua-Norbert, earlier said that their people-first approach ensures that every team member is supported, valued and motivated to deliver their best work.
The company has also set a higher standard by prioritizing integrity and accountability, which assures safe spaces and employees’ welfare in an industry fraught with challenges, toxic hours and sexual misconduct, which have been normalized throughout the years as people turn a blind eye, she added.
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