By Lenie Lectura - June 4,
2019
THE Department of Energy (DOE) on
Monday called on all distribution utilities (DUs) to immediately conduct a
competitive selection process (CSP) in procuring their power-supply
requirements following the recent Supreme Court decision.
“All affected power industry players
must catch up and push under the CSP those stalled supply agreements for the
next 23 years,” said Energy Secretary Alfonso Cusi.
Consultative meetings with the
concerned stakeholders are already under way, said Cusi. “Power development in
our country, particularly in Luzon, has been at a standstill for three years.
We can no longer afford any further
delay. We need to act now with extreme urgency to make up for the lost time.”
At the same time, the agency also
directed the DUs to submit annual supply demand projections for the next three
years, and from 2023 to 2030 to ensure that they have sufficient supplemental
power-supply levels to meet their respective franchise obligations in the years
to come.
“We at the DOE widely welcomed the
decision of the SC, which held that all PSA applications submitted by DUs
to the Energy Regulatory Commission [ERC] on or after June 30, 2015, shall
comply with the Competitive Selection Process [CSP] in accordance with the 2018
DOE Circular [DC2018-02-0003] and its Annex ‘A.’”
As indicated in the
circular, the DOE said it will closely oversee the competitive bidding
process to guarantee that the exercise is conducted in an open, transparent,
effective, efficient and equitable manner. For its part, the ERC will work
alongside the DOE by enforcing and implementing the relevant policies we have
formulated, as well as all pertinent rules and regulations we have issued. However,
should the process grossly fail, the DOE will not hesitate to enact all
necessary measures to uphold the integrity and completion of the CSP.
“We seek the full cooperation of all
our industry stakeholders as we work to improve the level and reliability of
our country’s power supply.”
The DOE is awaiting the list of
affected PSAs from the ERC.
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