By Lenie Lectura - March 22, 2019
The Energy Regulatory Commission
(ERC) is soliciting comments from industry stakeholders on the third draft on
the proposed rules for power-supply contracting.
The proposed “Rules Governing the
Procurement, Execution, and Evaluation of Power Supply Agreements Entered Into
by Distribution Utilities for the Supply of Electricity to their Captive
Market” aim to prescribe guidelines on default contractual provisions and
minimum standard format in order to make the process of power-supply
contracting clear and efficient, said the regulator.
The proposed rules will also
streamline the review and approval process of power supply agreements (PSA), as
it seeks to promote transparency in the selection and contracting of
distribution utilities (DUs) while promoting competition among generation
companies (gencos).
“The third draft contains some new
features or provisions that are meant to protect the consumers’ interests, like
the inclusion of a fixed bid price in the terms of reference [TOR] and a new
section detailing the prohibited acts, fines and penalties, which include
blacklisting.
Another section was added on
unsolicited proposal which pertains to project proposals submitted by gencos or
other entities authorized by the ERC to supply electricity to the captive
market, that are not in response to a formal solicitation or request issued by
a DU,” said ERC Chairman Agnes VST Devanadera.
She added that the proposed rules
apply to all DUs both on-grid and off-grid, gencos, Independent Power Producer
Administrators, and other entities authorized by the ERC to supply power to the
DUs. The ERC chief stressed that the proposed rules provide equal opportunity
to all relevant stakeholders, and to achieve a reasonable and competitive
pricing of generation rate to be charged to captive customers.
Industry stakeholders have until March
29 to submit their comments.
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