Published May 14, 2018, 10:01 PM By Myrna M.
Velasco
The Department of Energy (DOE) is
enforcing a stringent timeline of 65 days to approve the applications of customers
seeking direct connection to the power grid, primarily industries that have
been batting for efficient and reliable electricity service.
The DOE noted it “shall ensure the
provision of adequate and reliable power supplies for industrial enterprises
with the end view of promoting investments and industrial development and
generating exports and employment.”
It thus propounded that “the maximum
number of days for the processing of the application for direct connection
shall be 65 days from its submission to the Office of the Secretary.”
A draft Department Order has
emphasized that “the evaluation and tracking system, including the timelines in
the different evaluation stages, shall be strictly observed.”
The processing of direct connection
applications, based on the energy department’s mandate shall be governed by a
Direct Connection Review and Evaluation Committee (D-REC); that shall also be
aided by a technical working group (TWG) and secretariat.
The designated head of the D-REC
will be the DOE Undersecretary supervising the Electric Power Industry
Management Bureau; while the TWG is to be led by the Assistant Director of the
same bureau.
The committee, it was stressed,
shall “ensure orderly and transparent manner of processing and resolving direct
connection applications.”
The department said it is prompted
into easing application processes for directly connected customers so this
could serve as a valuable option for industrial end-users.
For many industrial end-users, they
deem that directly drawing power from the grid could give them advantage,
primarily on the sphere of cheaper costs.
This is supposedly in contrast to
procuring electricity supply and service from franchised distribution utilities
– although in the era of retail competition, cost worries are already getting
eclipsed by the very intense contest that power suppliers have been offering to
qualified contestable customers which are generally industrial end-users also.
The applications for direct
connection of qualified entities shall cover technical, financial and legal
aspects, the department said.
Prior to the final issuance of its
Department Order, the DOE has given word to stakeholders that it shall
undertake first the necessary consultations and focus group discussions (FGDs)
or even formal hearings “to gather and determine all facts relating to direct
connection applications,” – particularly from petitioner industrial
enterprises; franchised distribution utilities, the National Grid Corporation
of the Philippines, generation companies and other relevant groups.
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