Gencos told: Join power supply bidding via CSP

By Lenie Lectura - July 19, 2019

https://businessmirror.com.ph/2019/07/19/gencos-told-join-power-supply-bidding-via-csp/

Consumer group Laban Konsyumer Inc. (LKI) strongly urged all power-generation companies (genco) to participate in the bidding of power supply requirements via competitive selection process (CSP) of distribution utilities (DUs) to assure the country of adequate and affordable power supply.

“There should be the participation of all power suppliers. CSP allows for the bidding of all power generators. The more power plants, the better…it is not the time to block power generators from bidding. We must encourage all interested parties to participate in CSP and bidding to save our country from a power situation crisis,” said LKI President Victor Dimagiba.

At the same time, LKI called on all DUs and electric cooperatives  to immediately conduct and implement a CSP in procuring their power supply requirements following the recent Supreme Court decision that required all power supply agreements (PSAs) forged after June 30, 2015, to undergo CSP.

The CSP requires DUs to hold competitive bidding for their supply requirements as against securing power deals via bilateral contracts. This is meant to ensure transparency and fair competition.

LKI agreed with the Department of Energy (DOE) in saying that all affected power industry players must catch up and push under the CSP those stalled supply agreements in a bid so as to ensure adequate power supply at the least cost  to meet the growing electricity demand of the country.

“It is imperative that  we add to our current  power  supply situation. Unfortunately, we have had more red and yellow alerts this year than in the past five years. We are already more than  three years too late according to our energy timetable.

“It is important that CSP is undertaken and implemented immediately, and invitations to all bidders begin. The CSP process will ensure that the much-needed power supply will be provided at the least cost possible, which will, in turn, benefit consumers. CSP itself was designed to ensure the best bids and the least costs to the consumers. We can no longer afford any further delay. We need to act now with extreme urgency to make up for the lost time,” said LKI.

The Manila Electric Co. (Meralco) has already published three bid invites for its power requirements totaling 2,900 megawatts (MW).

Over 90 PSAs, with about 5,000 MW capacity, were affected by the SC decision. Of which, 70 percent of the affected PSAs are from Meralco.