by Myrna Velasco February 19, 2016
With several power supply agreements
(PSAs) getting delayed approvals due to the mandatory competitive selection
process (CSP), the Department of Energy (DOE) indicated that it may seek
exemption for those that may prove critical to electricity service during the
election period.
“If it is needed, then we will seek
for exemption, but only for contracts that will be critical to power service in
electoral precincts,” Energy Secretary Zenaida Y. Monsada has noted.
Nevertheless, she qualified this
will be done in coordination with the Energy Regulatory Commission (ERC), which
has now the mandate on the CSP when it comes to rate regulation.
Monsada stressed that since the ERC
is part of the task force ensuring stable power supply during the polling
period, it will be correspondingly apprised with the inventory which particular
electric cooperatives or distribution utilities will be affected.
The ERC previously issued to media
the list of various DUs and power generation companies seeking exemptions on
varied reasons.
It has to be culled though that some
of them are batting for exemption for their short-term power deals as well as
the contracts already nearing expiration – if only to sustain supply in their
respective service areas.
Other contracts are those already
signed prior to the November 6 cut-off date prescribed for the CSP mandate.
The initial response of the industry
regulator is to deny exemption pleas, but it indicated that price challenge may
be allowed based on a resolution that will be issued soon.
The CSP is a supply tendering scheme
that intends to inject transparency in the power purchases of DUs, a policy
that both the DOE and ERC opined to be beneficial for the Filipino consumers.
Given the sudden implementation of the policy though, there are power supply
contracts already getting affected in the process.
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