Cayetano calls for suspension of Meralco's selection process for 600 MW baseload supply
July 19, 2024
Cayetano calls for suspension of Meralco's selection process for 600 MW baseload supply
Senator Alan Peter Cayetano on Thursday called for a halt of Manila Electric Company (Meralco)'s Competitive Selection Process (CSP) for 600 megawatts of baseload supply starting next year, citing concerns over fairness.
Cayetano made the call following discussions with Meralco's representative Atty. Jose Ronald Valles during the Senate Committee on Energy hearing on July 18, 2024 in which he discovered that older plants, including the Malampaya gas field, were disqualified due to arbitrary terms set by Meralco when it comes to the age of the plant.
"It doesn't take an expert to see na parang may pinili na ang Meralco just by the terms of reference (that prevent First Gen plants from bidding). Parang ayaw ng Meralco sa Malampaya, hindi ba?" he said, referring to the Lopez family-led renewable energy firm established in December 1998.
Cayetano said even the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) "had some questions about this."
Cayetano argued that the unfair CSP and treatment would discourage foreign investors from participating in energy exploration and drilling in the country.
"Paano tayo makakahikayat ng foreign investors para mag-drill at mag-explore ng energy kung hindi natin tatangkilikin ang Malampaya, kung ibo-box out natin ito sa lahat ng bidding?" he said.
Cayetano also scored Meralco's redefinition of 'greenfield,' which he believed limited participation in the bidding process.
"Ang problema ay may sarili kayong definition ng 'greenfield.' Kaya lumalabas, pinipili niyo na kung sino ang mananalo sa bidding," the senator told Atty. Valles during the hearing.
In the hearing, the ERC clarified that the industry's definition of 'greenfield' refers to projects that are "not yet existing, constructed, and financed."
Meralco, meanwhile, defined it as plants that are "operational as of January 2020."
Given these concerns, Cayetano proposed to the DOE and ERC to suspend the August 2, 2024 deadline for the actual bid submissions to allow for further clarification of CSP rules and pending issues.
"I think the DOE and ERC should seriously consider stopping. It wouldn't cause too much delay clarifying all these rules and pending cases," he urged the panel members.
Cayetano, nanawagan na suspindihin ang proseso ng pagpili ng Meralco para sa 600 MW baseload supply
Nanawagan si Senador Alan Peter Cayetano nitong Huwebes na itigil ang Competitive Selection Process (CSP) ng Manila Electric Company (Meralco) para sa 600 megawatts nitong baseload supply simula sa susunod na taon dahil sa mga alalahaning hindi ito patas.
Ginawa ni Cayetano ang panawagan kasunod ng pakikipagtalakayan sa kinatawan ng Meralco na si Atty. Jose Ronald Valles sa pagdinig ng Senate Committee on Energy nitong July 18, 2024.
Natulkasan ng senador na ang mga mas lumang planta, kabilang ang Malampaya gas field, ay na-disqualify dahil sa mga arbitrary na termino na itinakda ng Meralco pagdating sa edad ng planta.
"It doesn't take an expert to see na parang may pinili na ang Meralco just by the terms of reference (that prevent First Gen plants from bidding). Parang ayaw ng Meralco sa Malampaya, hindi ba?" sabi ni Cayetano sa pagdinig ng Senate Committee on Energy noong Hulyo 18, 2024.
Ang First Gen, na pinamumunuan ng pamilya Lopez, ay isang renewable energy firm na itinatag noong Disyembre 1998.
Dagdag ni Cayetano, maging ang Department of Energy (DOE) at ang Energy Regulatory Commission (ERC) "ay may ilang mga katanungan tungkol dito."
Ikinatwiran ni Cayetano na hindi makakahikayat sa mga dayuhang mamumuhunan na lumahok sa pagsaliksik at pagbabarena ng enerhiya sa bansa kung hindi patas na CSP.
"Paano tayo makakahikayat ng foreign investors para mag-drill at mag-explore ng energy kung hindi natin tatangkilikin ang Malampaya, kung ibo-box out natin ito sa lahat ng bidding?" tanong niya.
Binanatan din ni Cayetano ang pagbabago ng kahulugan ng Meralco sa 'greenfield,' na pinaniniwalaan niyang nag-limita sa partisipasyon sa proseso ng bidding.
"Ang problema ay may sarili kayong definition ng 'greenfield.' Kaya lumalabas, pinipili niyo na kung sino ang mananalo sa bidding," wika ng senador kay Atty. Valles.
Sa pagdinig, nilinaw ng ERC na ang kahulugan ng industriya ng 'greenfield' ay tumutukoy sa mga proyektong "hindi pa umiiral, itinayo, at pinondohan."
Samantala, tinukoy ito ng Meralco bilang mga planta na "operational as of January 2020."
Dahil sa mga alalahaning ito, iminungkahi ni Cayetano sa DOE at ERC na suspindihin ang August 2, 2024 deadline para sa aktwal na pagsusumite ng bid upang bigyang-daan ang karagdagang paglilinaw sa mga tuntunin ng CSP at mga nakabinbing isyu.
"I think the DOE and ERC should seriously consider stopping. It wouldn't cause too much delay clarifying all these rules and pending cases," hinihimok niya ang mga miyembro ng panel.
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