By Danessa Rivera (The
Philippine Star) | Updated April 30, 2016 - 12:00am
MANILA, Philippines - The Energy
Regulatory Commission (ERC) has reminded power players to comply with the
competitive selection process (CSP) policy which takes effect today.
The ERC said distribution utilities
(DUs) are now required to undertake competitive bidding to secure power supply
agreements (PSAs) with generation companies.
This means at the start of business
hours on May 2, the ERC will only docket PSAs that underwent competitive
bidding.
“The distribution utilities and the
generation companies are enjoined to comply with the requirement on the conduct
of a competitive selection process before entering into a power supply
agreement to promote transparency in the procurement of power and elicit the
best price offers which would mean a lower pass-on charge to electricity
consumers,” ERC chairman Jose Vicente B. Salazar said.
DUs cover private distribution
companies and electric cooperatives.
Last month, the ERC moved the
effectivity date of the CSP policy from Nov. 6, 2015 to April 30, 2016.
The decision to delay the CSP
implementation date will allow power players a transition period.
The power regulator has received
numerous requests and clarifications from industry players about the policy,
ERC spokesperson Floresinda Digal said earlier.
After the November implementation of
CSP, the ERC has received at least 15 letters of request for exemption from
conducting biddings.
These requests came from Philippine
Rural Electric Cooperative Association Inc., The Association of Mindanao Rural
Electric Cooperatives Inc., Agusan del Norte Electric Cooperative Inc., SMC
Global Power, Region 8 electric cooperatives, Camarines Sur IV Electric
Cooperative Inc., NEgros Occidental Electric Cooperative, Abra Electric
Coopetative Inc., Palawan Electric Cooperative and Office of the Sangguniang
Panlalawigan of Puerto Princesa City.
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