Competitive selection effective April 30 – ERC


The Energy Regulatory Commission (ERC) allowed distribution utilities (DU) and electric cooperatives (EC) to hold their own type of competitive selection process until April 30.

“The effectivity of the CSP Resolution is hereby restated to be April 30, 2016. All power supply agreements executed on or after the said date shall be required, without exception, to comply with the provisions of the CSP Resolution,” the regulatory body said in a resolution.

The CSP requires DUs or ECs to bid out their power requirements through a bidding process and not through the traditional bilateral negotiations.

The winning bidder will gain the PSA and are allowed to source their capacity.

The DUs and ECs are presently allowed to hold their own type of CSP, but are still required to have the following minimum terms of references, such as required or contracted capacity and energy volumes, generation sources, method of procurement for fuel, cooperation and contract period.

It also seeks the tariff structure unbundled to capacity fees, variable and fuel operating maintenance fee, fuel fee and their derivation and base fee adjustment formula.

The commission’s other requirements includes the form of payment, penalties, grid
connection details and other key parameters.

It further said the DUs and ECs are required to have at least two qualified bids before proceeding with the CSP.

The ERC, however, has yet to issue the guidelines for CSP. It was initially implemented on October 20, 2015.

The commission also noted the DU/EC and generation company could extend their power supply agreement for a year from the end of it.

It explained automatic renewal causes or extension of PSAs will not be allowed by June 1. PNA


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