No timeframe yet on issuance of definitive guidelines on CSP

by Myrna Velasco November 10, 2015

http://www.mb.com.ph/no-timeframe-yet-on-issuance-of-definitive-guidelines-on-csp/

The competitive selection process (CSP) on power supply procurement of distribution utilities (DUs) was already set as a mandatory policy, but the issuance of guidelines or definitive rules is something that the concerned government agencies would not be rushing.

“There’s no timeframe yet on when the guidelines will be finalized,” was how Department of Energy (DOE) acting undersecretary Mylene Capongcol has noted, while emphasizing that they are still studying the details of the CSP implementation.

The CSP came as “code puzzle” to the power industry, with many of them still clueless on how to carry out a mandate without the necessary details and implementing guidelines.

Notably, for DUs with expiring bilateral contracts, they have to figure out if there is already a moratorium on pursuing any bilateral contracts with suppliers – including the negotiations that are already for firming up.

When asked on this matter, Energy Regulatory Commission (ERC) chairman Jose Vicente B. Salazar said “there is no moratorium on bilateral contracting because the result of the CSP is still a bilateral agreement.”

He added “bilateral contracting is allowed as long as it complies with the resolution on CSP.”

The CSP mandate was issued last week by the ERC via Resolution No. 13 Series of 2015.  The policy will be effective upon compliance with publication requirements.

That was essentially ERC’s own version as anchored on its 2013 plan on such policy – somehow diverting from the CSP Circular that was issued during the tenure of Energy Secretary Carlos Jericho Petilla.

In the ERC version, the third party and the mandated aggregation of the DUs’ requirements have been conspicuously missing.

But Capongcol said these CSP provisions or proposals might still be tackled as they continually discuss the implementing rules of the policy.

According to Energy Secretary Zenaida Y. Monsada,  “the DOE and ERC are working closely together” on the policy, stressing that such was anchored on balancing “the interests of the consumers and the industry participants.”