Rules on power CSP deferred

MANILA, Philippines - The Department of Energy (DOE) and Energy Regulatory Commission (ERC) have jointly agreed to defer coming out with a decision on the rules for the controversial competitive selection process (CSP) until the first week of November.

The DOE requested for a meeting with the power regulator before issuing the implementing guidelines for the CSP, ERC chairman Jose Vicente Salazar said in a text message to reporters.

“We will defer any announcement on the Competitive Selection Process as we prepare for the meeting requested by the DOE Secretary next Wednesday,” he said.

“We shall make the appropriate announcement on the matter after the said meeting is held,” he added.

Salazar noted the decision to defer any announcement is “cognizant of the mandate of the DOE to formulate policies to ensure the security of supply of electricity, as well as the ERC’s authority to act as an independent regulatory body in the electric power industry.”

The DOE and ERC have earlier set Oct. 27 as the deadline for the implementing guidelines for the much-debated CSP.

A series of public consultations were held in Manila, Cebu and Davao earlier this month to get the side of industry stakeholders.

Manila Electric Co. (Meralco) has been very vocal on its position against CSP. It said the process should be on a voluntary basis.

On the other hand, former Energy Secretary and Trans-Asia Oil and Energy Development Corp. president Francisco Viray said the third party component will just add another layer to the already long bidding process.

During the public consultation in Manila, the DOE denied a couple of proposals to extend the Oct. 27 deadline.

DOE and ERC officials have said a decision on whether to go through CSP or not will be made on or before the deadline.

But prior to the deadline, officials from both agencies were not available for comment.

Last June 30, the DOE issued a circular mandating all distribution utilities to go through competitive bidding in securing power supply agreements (PSAs).

The agency said the mandate aims to make the power purchase process transparent and to bring down prices in line with the objective of the Electric Power Industry Reform Act of 2001 (EPIRA).