THE Department of
Energy (DoE) has clarified certain guidelines for distribution utilities (DUs)
seeking to secure power deals through competitive bidding.
In an advisory, the DoE
said all power supply agreements (PSAs) should undergo the competitive
selection process (CSP), as mandated by Department Circular DC2018-02-0003
issued in February 2018.
The particular provision calls for the creation of a five-member, third-party
bids and awards committee (TPBAC) to oversee the CSP, with three of its members
coming from the DU and the rest from customers not directly connected to the
utility.
The TPBAC is comprised
of a DU officer with a technical know-how in operating a utility, a DU
officer/employee knowledgeable about any local or international CSP, a lawyer,
a finance officer or accountant acquainted with electricity pricing, and a
technical person or someone with experience on local or global competitive
bidding. One of the last three shall represent the utility.
The DoE recognized that
some franchise areas may not have enough available specified professionals.
Hence, it allowed the inclusion of a registered captive customer with
knowledge/experience in the fields of accounting, economics, finance, law, and
engineering, as well as a customer who has an expertise in local or global
competitive bidding scheme. The same applies to the composition of the joint
TPBAC.
“This will ensure that the possible non-availability of
the specified professionals shall not hamper the conduct of a CSP for the
procurement of power supply. This is especially true with respect to off-grid
areas in the country,” it said.
The DoE made the
clarification in the circular introducing CSP in signing PSAs to foster
competition and transparency and meet market demand at minimum cost. This calls
for the compliance with the standard procurement procedures and documents in
securing electricity for customers.
DOE expects new excise tax to reflect on fuel prices by mid-January
January
1, 2019 5:48pm By TED CORDERO, GMA News
https://www.gmanetwork.com/news/money/economy/680026/doe-expects-new-excise-tax-to-reflect-on-fuel-prices-by-mid-january/story/
The second round of
higher excise taxes on petroleum products officially took effect on Tuesday,
Jan. 1, 2019, but will be reflected by fuel prices by the middle of this
month, the Department of Energy (DOE) said Tuesday.
Oil companies must
first consume their 2018 inventory before applying the second tranche of fuel
excise taxes on sales.
The Energy department
estimated that the 2018 fuel stocks might last until mid-January, “depending on
demand,” Energy Secretary Alfonso Cusi told GMA News Online.
Only then can the new
excise tax rates be applied fuel sales.
The estimate is based
on DOE’s requirement for oil companies to maintain a minimum inventory to cover
15 days of market demand.
“Excise tax will be
applied only to new inventories. Oil companies have to sell their old stocks
without the new excise tax,” Cusi emphasized.
The Tax Reform for
Acceleration and inclusion (TRAIN) law imposed a P2.50 per liter excise tax on diesel,
from zero, and hiked the levy on gasoline to P7.00 per liter on Jan. 1, 2018.
The measure was signed
into law by President Rodrigo Duterte in December 2017.
Under the tax reform
law, fuel excise taxes will go up by P2.00 per liter starting Jan. 1, 2019.
This means that the excise tax on diesel will go up to P4.50 per liter and on
gasoline to P9.00.
The DOE earlier
reminded oil companies not to impose the second round of fuel excise taxes
starting January 2019, particularly on petroleum stocks obtained in 2018.
The Energy department
also warned violators face administrative penalties such as closure of the
enterprise and criminal penalty of large scale estafa. —VDS, GMA News
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