DOE seeks feedback by Oct. 11 on missionary electrification

By Lenie Lectura - October 9, 2019

https://businessmirror.com.ph/2019/10/09/doe-seeks-feedback-by-oct-11-on-missionary-electrification/

A Meralco lineman fixes electric lines on a busy street in Baclaran, Parañaque City, in this October 2019 photo. Electricity rates in October increased to P9.0862 per kWh from last month’s P9.0414 per kWh, on higher generation charge recorded for the supply month of September. Meralco said Tuesday the upward adjustment means an increase of around P9 in the typical household’s total bill.

THE Department of Energy (DOE) is soliciting comments on the revised guidelines for its qualified third-party  (QTP) program, which allows the entry of “alternative” electric service providers to remote and unviable areas that were originally assigned to a particular distribution utility (DU) but which failed to carry out its mandate.

“In order to meet the total electrification target of the government, there is a need to update and revise the existing guidelines on the participation of QTPs to provide a policy and regulatory environment that is more conducive to the participation of private sector,” stated the new draft rules.

The DOE wants all comments in by October 11.

Sought for comment, DOE Director Mario Marasigan explained, “the new proposed department circular provides for simplified process for QTP proponents.”

The process starts upon the declaration of unviable areas, which the DU cannot serve for any reason.

These areas will be open for competitive bidding. The DOE will approve the terms of reference and bid documents within 20 days upon receipt from the DUs.

A QTP proponent shall submit its bid proposal not later than 60 days from the publication of the bid invite. It may also submit a nomination for QTP operation in its area of interest not covered by a competitive bidding process, which shall be subjected to price challenge.

In case the DU fails to conduct its competitive bidding for QTP within 20 days from the DOE’s declaration of unviable areas or from the direct nomination by the QTP proponent, the DOE shall conduct the bidding.

A QTP Service Contract will be entered into between the DOE and the QTP. The contract will define the latter’s responsibilities in providing the missionary electrification in unviable areas. The contract shall set the terms and conditions by which the QTP shall provide the service including the applicable performance and service standards, excluding the Full Cost Recovery Rate.

The rules also allow the QTP to apply for an electricity distribution franchise.

The DOE said all unviable areas, which the DU cannot serve for whatever reason, are eligible for support under the government’s missionary electrification program and are declared open for participation by QTPs.