UP CIDS RELEASES STATEMENT ON THE DOE DEPARTMENT CIRCULAR DC2015-06-0008 “Mandating All Distribution Utilities (DU) to Undergo Competitive Selection Process (CSP) in Securing Power Supply Agreements (PSA)” AND THE INITIAL IMPLEMENTING RULES AND REGULATIONS
On June 30, 2015, the DOE released Department Circular DC2015-06-0008, “Mandating All Distribution Utilities (DU) to Undergo Competitive Selection Process (CSP) in Securing Power Supply Agreements (PSA).” The implementation of which, was set to be 120 days after its release which is on October 27, 2015. Several questions were raised on the circular especially on how the CSP will be conducted, who will handle such a responsibility, and whether or not it will really lead to least-cost prices for electricity rates among others.
After 73 days since the release of the CSP Circular, the DOE and ERC released an initial draft of the Implementing Rules and Regulations (Implementing Guidelines or IG) which raised more questions especially on the extent of the jurisdiction given to the Third Party which is assigned to conduct the CSP.
In a Public Forum held last September 29, 2015, UP CIDS presented its statement on the DOE’s Circular. This statement was formulated with the help of some experts from the university who have experience or have done research regarding the subject. In summary, the UP CIDS sees that the CSP can lead to lower electricity rates. However, the implementation of such cannot be rushed and careful consideration has to be taken into crafting the IG especially looking into the function of the Third Party, how they will be selected, what their jurisdiction in the whole matter of CSP will be, and how they will be remunerated for their services.
You can read download the full statement of the UP CIDS here:
The DOE also released on its website the list of stakeholders who have given their comments on the CSP Circular as well as the IG. You can find the list on their website at: https://www.doe.gov.ph/news-events/events/announcements/2806-list-of-stakeholders-that-submitted-comments.