Danessa Rivera (The Philippine Star)
- May 29, 2019 - 12:00am
MANILA, Philippines — The Department
of Energy is coming out with a list of power supply agreements (PSAs) affected
by the Supreme Court decision that requires all power distributors to conduct
competitive bidding for power deals.
In an interview yesterday, DOE
Assistant Secretary Redentor Delola said the list of affected PSAs would be
determined by the Energy Regulatory Commission (ERC), which will be transmitted
to the DOE.
“We’ll have to make the list public
so that everybody will know which PSAs are affected.
All of the PSAs affected and
considered terminated will have to undergo CSP (competitive selection
process),” Delola said.
The recent SC decision invalidated
all PSAs signed after Nov. 7, 2015, the original implementation of the CSP
policy, which requires distribution utilities and electric cooperatives to
undertake competitive bidding to secure PSAs with generation companies.
The ERC implemented the CSP policy
on April 30, 2016 to give power players a transition period to comply.
It said over 90 PSAs had been hit by
the CSP directive, including the seven contracts of Manila Electric Co.
(Meralco) with over 3,500 megawatts (MW) in capacity.
“The decision of the Supreme Court
is very clear. For Meralco, they have to do it fast. Don’t waste time,” said
Energy Secretary Alfonso Cusi.
Meralco earlier warned of massive
implications in the power industry if the SC decision would be implemented as
it
is.
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