Published
By Myrna M. Velasco
The Energy Regulatory
Commission (ERC) has conceded to the prescribed set of rules of the Department
of Energy (DOE) on “exceptional conditions” when Swiss challenge can be invoked
on the power supply contracting of the distribution utilities.
ERC Chairperson Agnes
T. Devanadera told media that the two agencies have “agreed” on the parameters
as to when Swiss challenge can be accepted as an “auction scheme” under the
Competitive Selection Process (CSP) of underwriting power supply agreements
(PSAs) by the power utilities.
“In so far as the ERC
is concerned, we have always recognized Swiss challenge… insofar as DOE is
concerned, we have both opened up, and in fact in principle, we have agreed on
the differences in our rules,” Devanadera said.
She emphasized that the
two agencies already had “meeting of the minds” when it comes to the policy’s
application.
“We’re just drafting
the refinements for our rules… there are just two more issues that we’re trying
to refine. There’s no conflict anymore,” the ERC chief said.
According to Energy
Undersecretary Felix William B. Fuentebella, the parties already consented to
the scope as to when Swiss challenge can be accepted as an option under the
CSP.
These parameters, he
said, shall include projects covered by grants or donations; emergency
procurements; provision of power supply to off-grid areas primarily by
government-owned and controlled corporations; and provision of power supply
through bilateral deals with state-run Power Sector Assets and Liabilities
Management Corporation.
Swiss challenge is a
procurement process, wherein a particular agency or entity receives an
unsolicited proposal, and opts to subject it to a matching tender by a third
party.
The energy official
qualified that these Swiss challenge applications are provided under Section 2
of the CSP guidelines institutionalized by the DOE.
Other than these
circumstances, all power supply agreements to be underwritten by distribution
utilities or DUs for their captive customers (generally the residential
end-users) shall go through a comprehensive bidding process.
Another matter that the
DOE has been sorting out with the ERC is on the representation of consumer
group in the third party bids and awards committee (TPBAC) on the CSP processes
to be undertaken by DUs.
Fuentebella noted this
concern is similarly being discussed with affected stakeholders, primarily the
criteria of selection of the consumer group’s representative in the
CSP-supervising body.
The CSP is a bidding
process prescribed to DUs in their procurement of power supply so it can be
ensured that the electricity they will purchase will be the cheapest for the
end-users’ electric bills.
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