By Danessa Rivera (The
Philippine Star) | Updated January 27, 2018 - 12:00am
MANILA, Philippines — The Department
of Energy (DOE) will soon start a regular audit and assessment on the overall
performance of the power industry.
DOE Secretary Alfonso Cusi has
signed a circular establishing guidelines for the performance assessment and
audit of all power generation, transmission and distribution systems and
facilities.
The agency said it sees the need to
adopt policies for the effective enforcement and monitoring of various
compliance requirements such as standards, anti-competitive behavior metrics
and reportorial requirements.
“The performance assessment and
audit shall serve as the DOE’s tool for the assessment of the overall
performance of the electric power industry, thereby paving the way for a holistic
and comprehensive development of policy that is instrumental in supporting the
economic growth of the country,” it said.
The DOE defines performance audit as
the complete and careful inspection and examination to determine whether
systems and facilities in the operation of the power generation, transmission
and distribution sectors are in accordance with standards.
Meanwhile, performance assessment
involves the holistic evaluation to determine whether industry participants,
their systems, operations and facilities adhere to the principles of
efficiency, effectiveness, appropriateness and safety.
The DOE said this policy would
ensure the power industry’s compliance with current standards. It will also be
used in the development of the Philippine Energy Plan and the update of
existing processes, policies, regulations and standards.
Under the circular, the performance
audit on the power generating sector will be conducted by the Grid Management
Committee (GMC), Distribution Management Committee (DMC) and the Philippine
Electricity Market Corp. (PEMC), through its Enforcement and Compliance Office
and Market Surveillance Committee (MSC).
The audit of transmission system and
facilities will also be done by the GMC, PEMC’s MSC, as well as the National
Transmission Corp. (TransCo) and Power Sector Assets Liabilities and Management
Corp. (PSALM).
The DMC, GMC, PEMC and the National
Electrification Administration (NEA) will do the audit on the distribution sector.
The circular said audit reports must
be submitted to the DOE and ERC within seven days after the completion of the
audit report.
Meanwhile, the DOE, through the
Performance Assessment and Audit Task Force will, conduct the annual
performance assessment on the power industry.
Apart from annual assessments, the
DOE will also conduct an incidental/special audit on the industry when it deems
necessary, such as when there are significant incidents causing power
disruption, during emergency situations arising from natural or man-made
calamities and when directed by the Energy chief.
At the start of his term in 2016,
Energy Secretary Alfonso Cusi issued a special order to the agency’s power
bureau to undertake a technical audit on power plants and the distribution
sector to have a better picture of the power industry.
The special audit will try to
validate the figures submitted by the generating companies and the distribution
utilities which will be used in the delivery of quality, reliable, secure and
affordable supply of energy.
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