Danessa Rivera (The Philippine Star)
- June 14, 2019 - 12:00am
MANILA, Philippines — Consumer
groups have called on the Energy Regulatory Commission (ERC) to include
end-users of electricity in the review of the competitive selection process
(CSP) policy.
Several consumer groups and energy
advocates marched to the ERC yesterday to protest the non-inclusion of
consumers in the discussions for CSP after the Supreme Court (SC) invalidated
power supply agreements (PSAs) that did not go through competitive bidding.
The groups, which include Murang
Kuryente, Power for People Coalition, Philippine Movement for Climate Justice,
and Sanlakas, have submitted a letter to ERC chairperson Agnes Devanadera
requesting for an audience to present the thoughts of consumers concerning the
selection process for PSAs.
“ERC has talked to generation
companies, they have talked to distribution utilities, but they have yet to
talk to the people who would pay the price for the result of their talks – the
consumers,” Murang Kuryente spokesperson Gerry Arances said.
ERC previously said it was coming
out with streamlined rules on CSP, including a format for PSAs, for all power
players to follow to secure supply in the grid and to protect consumers from
sudden spikes in power rates.
The Department of Energy and the ERC
have been working to harmonize their respective CSP rules for all distribution
utilities (DUs) to comply with in securing power supply for their respective
franchise areas.
Alongside the issuance of the CSP
rules is the release of the PSA format for all power players, which will
include a provision on the procurement of replacement power, especially in
times when the generating power plant undergoes forced maintenance shutdown.
In coming out with the streamlined
CSP rules, ERC said it has engaged all stakeholders—including consumers—through
public consultations (pubcons).
“Engagement with stakeholders—may it
be DUs, (generating companies) gencos or consumers—on the CSP was done through
public consultations,” ERC spokesperson Floresinda Digal said.
In fact, she said the ERC has
included comments from consumers in the CSP draft.
“Comments on the second and third
draft were likewise received. In fact, some of their suggestions were made part
of the current CSP draft,” Digal said.
The CSP rules will become the basis
of all PSAs signed on or after June 30, 2015 and were struck down by the SC in
its latest ruling.
To recall, the DOE had issued a
circular mandating all DUs to conduct CSP in securing PSAs effective June 30,
2015.
But this was set aside when the ERC
issued a resolution on October 20, 2015, stating that DUs may adopt any
accepted form of CSP pending formal process from the regulator.
The resolution also directed DUs to
comply with the CSP policy starting Nov. 7, 2015, but this was deferred to
April 30, 2016 to allow a transition period for power players.
Following the SC decision, the ERC
summoned the concerned electric power industry stakeholders and required them
to submit information that will enable the agency to assess the possible impact
of the high court’s ruling.
Meanwhile, MSK said it has been at
the forefront of the campaign to lower electricity prices since its
establishment the previous year.
The group welcomed the memorandum of
agreement (MOA) signed by the DOE and the Philippine Competition Commission
(PCC) to coordinate their actions on promoting market competition and
investigating collusions in the power sector.
“We have been asking the government
to investigate the cartel-like behavior of power companies for so long. This
agreement between the PCC and the DOE is a welcome development and a step
forward to putting consumers first in our electricity policy, as it should be,”
Arances said.
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