NAVAL, Biliran– Some 10 electric cooperatives in Eastern Visayas, which are members of the Federation of Rural Electric Cooperatives in Region 8 (FRECOR 8), have started the power supply procurement process for their long-term aggregate base load demand.
The Region VIII Joint Competitive Power Supply Procurement (R8-JCPSP) Joint Bids and Awards Committee, chaired by Engr. Janet L. Notarte, conducted the pre-bid conference held in Tacloban City on April 23, 2024.
According to Engr. Notarte, chairperson of R8 JCP, the rationale of the bidding for the member-electric cooperatives of FRECOR 8 is to secure a power supply contract.
This came after the expiration of the Emergency Power Supply Agreement (EPSA), which is only good for one year relative to the order of the Energy Regulation Commission (ERC) for the termination of the provisional authority relative to the application for approval of the Power Purchase and Supply Agreement for long-term power supply agreement based on the Supreme Court decision in the case of Alyansa para sa Bagong Pilipinas versus Energy Regulatory Commission, Notarte added.
“We are bound to provide our MCOs the least cost or the minimum rate impact. We are also bound to follow the Competitive Selection Process (CSP) issued by the ERC which is the ERC Resolution No. 16-2023,” Notarte emphasized.
She said the R8 JCPSP Bids and Awards Committee still has to choose whichever is the lowest and that can provide the least cost rate to MCOs because the ERC will be basing the approval of PSA on the rate impact to consumers.
The subject bids are composed of Lot 1 with a contract year starting 2024 to 2033 with the following list of electric cooperatives (ECs) with the respective contracted power capacity, as follows: DORELCO-12MW (October 8, 2024-December 25, 2033), LEYECO III-8MW (September 9, 2024-December 25, 2033), LEYECO IV-18MW (September 15, 2024-December 25, 2033), LEYECO V-40MW (September 22, 2024-December 25, 2033), SOLECO-14 MW (September 26, 2024-December 25, 2033), SAMELCO I-14MW(October 7, 2024-December 25, 2033), SAMELCO II-17MW (August 26,2024-December 25, 2033), ESAMELCO-15MW (September 26, 2024-December 25, 2033), NORSAMELCO-16MW (September 26, 2024-December 25, 2033), and BILECO-8MW (August 26, 2024-December 25, 2033) totaling 162 megawatts.
For Lot 2 with a contract year for 2027 to 2033, the following ECs with the contracted power capacity are the following: DORELCO-6MW (December 26, 2026-December 25, 2033), LEYECO V-5MW (December 26, 2024-December 25, 2033), SOLECO-4MW (December 26, 2024-December 25, 2033), SAMELCO I-4MW (December 26, 2024-December 25, 2033), SAMELCO II-3MW (December 26, 2024-December 25, 2033), and NORSAMELCO-6MW (December 26, 2024-December 25, 2033) totaling 28 megawatts.
LEYECO II was not part of the Region 8 Joint Competitive Power Supply Procurement as the said EC was the first to receive the ERC order for the termination of the provisional authority relative to the application for approval of the power purchase agreement for long-term power supply requirement, thus LEYECO II was able to immediately proceed the procurement processes to secure power.
Ten big power supply companies, which attended the pre-bid conference, came from Luzon, Visayas, and Mindanao.
The issuance of notice of award to winning bidders after the conduct of several bidding processes after the pre-bid conference is set on July 5, 2024; power supply agreement negotiation on July 6-15, 2024; signing of power supply agreements on July 22, 2024; issuance of notice to proceed on July 29, 2024; and the joint filing of power supply agreements on August 21, 2024.
(RSV/PIA Biliran)
