Manila Standard Today
By Alena Mae S. Flores | Jun. 19, 2014 at 12:01am
The Energy Regulatory Commission on Wednesday asked power distributors to hold public biddings, instead of bilateral negotiations, when securing supply contracts with power plant operators to ensure the least cost on consumers.
ERC commissioner Gloria Yap-Taruc told reporters at the sidelines of the Power and Electricity World Philippines forum some distribution utilities were not conducting public bidding for their supply requirements.
“Some of them are not actually doing it. So, one of the things we want them to do is to conduct competitive bidding for their power supply agreement. It’s still a proposed rule,” Taruc said.
Taruc said the commission would get the comments of the industry on the proposed measure.
“We are more inclined to have that one. They have to create their own terms of reference, if they need baseload plants, peaking plants,” she said.
She said the proposal was a part of the existing review on the rules regarding power supply agreements. “This is still for public consultation. We’ve given them a draft of our rules and we are asking them to comment,” Taruc said, adding the final rules were expected to be released within the year.
ERC issued the draft rules late last year “governing the execution, review and evaluation of power supply agreements entered into by distribution utilities for the supply of electricity to their captive market.” source
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