By Danessa O. Rivera (The Philippine Star) | Updated July 13, 2015 - 12:00am
MANILA, Philippines - The Energy Regulatory Commission (ERC) will meet soon with the Department of Energy (DOE) to craft rules for the competitive selection process (CSP) to be undertaken by distribution utilities (DUs) in securing power supply deals.
“We will start coordination meeting with DOE. We will have a draft out soon,” ERC executive director Francis Saturnino Juan said in a phone interview.
Once the draft rules are done, the ERC official said the draft rules would be presented to industry stakeholders and the public for deliberation.
“After drafting rules, we will be conducting public hearings for that,” Juan said.
Before vacating his post, former DOE secretary Carlos Jericho Petilla issued a circular directing all DUs to go through competitive bidding in closing power supply agreements (PSAs).
It covers all DUs, including “electric cooperatives, private investor-owned distribution utilities, local government unit-owned and operated distribution utility, multipurpose cooperatives, entities duly authorized to operate within economic zones and other entities engaged in the distribution of electricity,” Petilla said in the circular.
The CSP must determine the least cost outcomes and observe aggregation – or wholesale demand and energy requirements – for un-contracted demand requirements of DUs.
Guidelines for the aggregation of demand will be jointly issued by the ERC and the DOE, as well as the process for the recognition or accreditation of the third party that will conduct the CSP. source
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