DOE moves to ensure compliance with ruling on power supply deals bidding

By: Ronnel W. Domingo - 05:12 AM June 15, 2019

https://business.inquirer.net/272598/doe-moves-to-ensure-compliance-with-ruling-on-power-supply-deals-bidding

The Department of Energy (DOE) has initiated coordination with Manila Electric Co. to ensure the distribution giant’s “timely compliance” with a court-mandated requirement on competitive bidding for supply deals.

Energy Secretary Alfonso G. Cusi said in a statement that he had met last Thursday with Meralco officials, who, he said, had agreed that the country’s biggest power distributor should expedite the conduct of their competitive selection process (CSP) related to several power supply agreements (PSAs).

DOE data show that Meralco accounts for two-thirds of the Luzon power market—11,245 megawatts—with 6.6 million customers in 36 cities and 75 towns.

In a decision made public last month, the Supreme Court said applications for PSA approval that were submitted to the Energy Regulatory Commission on or after June 30, 2015, should comply with the CSP, a mechanism intended to ensure transparency and fair competition in the procurement of our power supply.

“The DOE and Meralco are in full agreement that the conduct of CSP is certified as urgent given the need to ensure a reliable and steady supply of energy to everyone at all times,” Cusi said.

“We must do it fast, and there must be no delays in the implementation of CSP for Meralco and for other distribution utilities and electric cooperatives,” he said. “Demand [for electricity] continues to grow and we want to be ready to supply the needs of a growing market to ensure that the country will maximize its growth potential.”

In its decision, the Supreme Court said the requirement for CSP in the power sector was primarily aimed at ensuring a fair, reasonable and cost-effective generation charge for consumers, under a transparent power sale mechanism between the generation companies and the utilities.

“We want to ensure accountability from power providers that supply is available and that they are ready for any eventuality, which is their responsibility as a player in a commodities sector,” Cusi said.