Former DOE chief thumbs down third party component in CSP

MANILA, Philippines - The third-party component in the implementation of the controversial Competitive Selection Process (CSP) directive of the Department of Energy (DOE) should, in fact, be scrapped, former Energy secretary Francisco Viray clarified.

Viray, who is currently the president of Trans-Asia Oil and Energy Development Corp., expressed concern on the accreditation of a third party for the CSP.

A third party “adds another layer” to the CSP process, Viray said.

“Who will be the third party? Why is there a need for it? Will the third party be competent?” he said.

Under the circular issued by DOE Secretary Carlos Jericho Petilla before leaving his post last month, all distribution utilities (DUs) are directed to go through competitive bidding in closing power supply agreements.

The DOE and the Energy Regulatory Commission (ERC) will jointly issue guidelines for the aggregation of demand and the process for the recognition or accreditation of the third party that will conduct the CSP.

Instead of tapping a third party to oversee the CSP, the DOE and ERC should ensure the implementing rules and regulations (IRR) are clear to make it work, Viray said.