ESPRESSO MORNINGS
By Joe Zaldarriaga
Under his guidance, Meralco achieved unprecedented milestones, clinching a historic 3-peat Company of the Year title at the IABC Philippine Quill Awards, scoring the only PR Team of the Year trophy bestowed at the Anvil Awards, and securing numerous honors at international and local communication awards.
Manong Joe’s leadership also extends as a respected member of the Board of Trustees for the Public Relations Society of the Philippines (PRSP), concurrent with his role as Chairman of the International Association of Business Communicators Philippines (IABC Philippines) where he also served as its President.
Manong Joe is a distinguished awardee of the medallion of honor and scroll of commendation from the University of Manila, owing to his years in public service as a communications professional. He shares his insights through columns in renowned publications, including The Philippine Star’s The Z Factor, and Philippine News Agency’s ESPRESSO MORNINGS.
The Taguig Regional Trial Court recently extended the temporary restraining order (TRO) that halted the competitive selection process (CSP) or bidding for 1,000 MW of needed power supply of distribution utility Meralco—a move that will ultimately result in a negative domino impact on the delivery of electricity service to millions of consumers.
The issue stems from the complaint of the consortium operating the Malampaya Gas Field, which argued that the terms of the biddings violated existing laws that give preference to indigenous natural gas in awarding power supply contracts—allegations that Meralco debunked.
In its recent statement, Meralco clarified that, in fact, power plants using Malampaya gas have expressed interest to participate in the bidding.
But because of the TRO, the bidding for the two power supply contracts—600 MW and 400 MW—will be delayed for 20 days to the detriment not just of ordinary consumers, but also industries that require stable, continuous, and reliable electricity service. Finally, this also poses as a roadblock to the government’s push for energy security.
What many don’t realize is that delays in these biddings ultimately have a consequential impact on the pockets of ordinary consumers.
When the implementation of power supply agreements is delayed, energy security is threatened. In essence, delays in the awarding of these contracts will compel Meralco to source the much-needed supply from the spot market, exposing consumers to highly volatile prices. In this case, consumers will have to pay more for electricity supply that could have been made available to them in a cost-efficient manner if only the biddings for the supply contracts were implemented as scheduled.
Such a scenario defeats the very purpose of the CSP wherein the winning bidder is chosen based on price offer. It contradicts the mandate of distribution utilities like Meralco to supply sufficient, continuous, and reliable electricity in the least cost manner to consumers.
Moreover, it goes against the government’s goal of achieving energy security since it puts in peril the power supply situation.
Clearly, it is the consumer who will suffer in the end.
Questioning the rules of these biddings proves to be a futile exercise given that these proceedings are conducted in a highly transparent manner.
These biddings observe strict processes and adhere to stringent rules set by the Department of Energy (DOE) and Energy Regulatory Commission (ERC)—which are tasked to ensure the transparency and integrity of these biddings.
According to Meralco, the DOE in fact issued a Certificate of Conformity to proceed with the CSPs—proof that the terms of the biddings comply with applicable government rules and regulations.
Neither the DOE nor the ERC has flagged any irregularity in relation to the biddings as well.
Questioning the integrity of these biddings is extremely insulting on the part of the government—particularly the DOE and ERC given that extensive research and hours have been devoted to craft the strict rules governing the CSPs.
It must be noted that after a winning bid has been declared, the ERC still has to conduct a stringent assessment to ensure that these contracts adhere to the strictest standards and rules set by the government.
At this point, it is best to rethink whether a halt in the implementation of the bidding is really in the best interest of the government and the consumer or if this is being clouded by business interests.
Let us not be distracted by technicalities and unnecessary obstructions from the goal of providing Filipino consumers with the cheapest possible power supply that will not only support communities but enable economic growth as well.
This for sure is in the best interest of the consumer and the country.
