DOE Calls on MERALCO, Other DUs to Expedite CSP Bidding of Stalled PSAs

Wazzup Pilipinas!

Department of Energy (DOE) Secretary Alfonso G. Cusi upheld the recent Supreme Court decision mandating the Competitive Selection Process (CSP) in the public bidding of power supply agreements.

"All affected power industry players must catch up and push under the CSP, those stalled supply agreements for the next 23 years," he said.

It may be recalled that the Supreme Court (SC) decision which maintained that “all Power Supply Agreement (PSA) applications submitted by Distribution Utilities (DUs) to the Energy Regulatory Commission (ERC) on or after 30 June 2015 shall comply with the Competitive Selection Process" was welcomed by the DOE.

Sec. Cusi said that the government will 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 CSP bidding of stalled power supply PSA applications of Meralco and other distribution utilities.

The Energy Chief has previously emphasized that the High Court’s ruling is 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."

Lastly, Sec. 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 again 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."

Consultative meetings with the concerned stakeholders are already underway, with the DOE also requiring all Distribution Utilities to submit annual supply demand projections to demonstrate the sufficiency of their supplemental power supply levels in the coming years.

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