Friday, October 23, 2015

Why Petilla bats for bidding



October 22, 2015

Competitive bidding for all power supply requirements of distribution utilities (DUs) should be mandatory instead of optional to get the best power rates for consumers, Liberal Party (LP) senatorial candidate and former Department of Energy (DOE) secretary, Carlos Jericho Petilla, said the other day.
Petilla, the brains behind the landmark regulation called “Competitive Selection Process” or CSP, said the circular is already helping achieve the goal of bringing down cost of power in the country and ensure transparency in the procurement process.
He cited as concrete examples at least two areas in Regions 1 and 3, where the practice of demand aggregation and competitive bidding yielded a per kilowatt-hour (kwh) price of P3.12 and P3.20, respectively, as opposed to the recently negotiated Meralco rate of P4.20 per kwh.
“This is the best example why CSP should be mandatory. Anything that two companies negotiate on but people pay for can’t be kept secret. It has to be open,” he said.

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