SAN MIGUEL-OWNED Limay Power Inc. has submitted the best offer for a 400-megawatt (MW) interim supply deal sought by Manila Electric Co. (Meralco).

Limay Power, which proposed a rate of P6.2798 per kilowatt-hour (kWh) for the entire 400 MW, was said to have bested sister firm Masinloc Power Co. Ltd., which submitted a P6.2957/kWh bid for 195 MW of capacity.

The two firms, which are both owned by San Miguel Global Power Holdings Corp., were the only bidders for the supply deal. A third interested party did not submit an offer, Meralco said.

Both offers were compliant with a P6.3512/kWh reserve price and also passed other criteria set by a bids and awards committee.

A post-qualification evaluation will now be conducted, which if successful will lead to a recommendation that Meralco's board approve the awarding of the contract to Limay Power.

Tuesday's auction came after Monday's failed bidding for a 260-MW supply agreement aimed at meeting an expected surge in demand during the summer.

Two companies — Vivant Corp.'s 1590 Energy Corp. and San Miguel Global Power's San Roque Hydropower Inc. — were said to have withdrawn their expressions of interest.

The 260-MW supply deal, based on earlier reports, would be effective up to July this year, while that for the 400 MW will run until February next year.

A Meralco official on Monday said that the firm would be seeking Energy department approval to conduct another auction for the 260 MW.

Meralco's share price fell by P3.60, or 0.97 percent, to P369.40 on Tuesday amid a 0.45-percent drop for the benchmark Philippine Stock Exchange index.