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DOE urges utilities to expedite bidding of supply deals

05:09 AM June 10, 2019

Energy Secretary Alfonso G. Cusi has urged distribution utilities to immediately conduct a public bidding of power supply agreements in line with the recent Supreme Court decision mandating the competitive selection of these deals.

“All affected power industry players must catch up and push under the Competitive Selection Process (CSP) those stalled supply agreements for the next 23 years,” said Cusi.

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To recall, the Supreme Court recently issued a decision saying that “all power supply agreement (PSA) applications submitted by distribution utilities to the Energy Regulatory Commission (ERC) on or after 30 June 2015 shall comply with the Competitive Selection Process,” a decision welcomed by the DOE.

Cusi said the government would ensure the compliance of all affected parties in the energy sector to the SC ruling, with the DOE taking the lead in prodding industry stakeholders to expedite the competitive bidding of stalled power supply applications of the Manila Electric Co. and other distribution utilities.

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Cusi had emphasized that the high court’s ruling was a nod to the DOE’s “longstanding conviction on the fundamental role of the CSP as a mechanism to ensure transparency and fair competition in the procurement of our power supply. It was designed to protect the consuming public from power rate spikes, pass-on charges, and avert predatory practices.”

Cusi reiterated the government’s responsibility to uphold and protect the right of the Filipino people to receive the full benefits of the country’s liberalized electric power industry, as envisioned by the Electric Power Industry Reform Act (Epira).

He underscored the wisdom of the Epira in providing for the deregulated and demonopolized generation and distribution of power as a means to “yield the delivery of the best services at the least cost to our consumers.”

The DOE has also required distribution utilities to submit annual supply demand projections to show the sufficiency of their power supply in the coming years.

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