Published
By Myrna M. Velasco
The Department of
Energy (DOE) has modified the policy on competitive selection process (CSP) of
power supply contracting being enforced upon distribution utilities (DUs) in
the country.
While power utilities
can previously undertake CSP processes on their preference, the energy
department is changing that policy tack via mandated creation of an independent
five-man third party bids and awards committee (TPBAC) that will then manage
the CSP supply procurements of DUs; or having a third party auctioneer.
As culled from the
provisions of the newly issued Department Circular 2018-02-0003 of the DOE, it
was stipulated that the TPBAC “shall spearhead and manage the CSP,” and must
also “be accountable to its decision in the conduct of the CSP.”
The composition of the
TPBAC shall comprise of three members that shall be coming from the DU, and the
two members “will come from the captive customers that are not directly or
indirectly related/affiliated to the DU.”
Captive customers would
refer to the segment of end-users who cannot exercise yet their freedom of
choice when it comes to contracting directly with their preferred retail power
suppliers.
In lieu of a TPBAC, the
DOE Circular sets an option of having a third party auctioneer (TPA) when DUs
will undertake CSPs on their power supply purchasing.
As specified in the DOE
Circular, “the TPA shall be a team of private individuals or a private
corporation duly recognized in the Philippines with experience in competitive
bidding and with sufficient knowledge in the electric power industry.”
It has been emphasized
that “the TPA is not in any way connected to any electric power industry
players.”
It was indicated though
that “the TPA shall have representation from the consumers as provided for in
the policy.”
Relative to the TPA,
the department is seeking the imprimatur of the Energy Regulatory Commission
(ERC) “to provide the guidelines for accreditation,” at least within 60 days
from the effectivity of the modified CSP policy. Under general terms, the DUs
being mandated to conduct CSP-underpinned power supply sourcing shall lay down
the following data and information on their procurement plan: historical data
on peak demand, supply contract, energy sales and energy purchase.
Additionally, they must
correspondingly provide 10-year monthly peak demand forecast; energy sales as
well as existing contracts, including their expiration dates.
The DUs must also give
details on their committed energy and demand for CSP; as well as their current
supply-demand status.
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