The Energy Regulatory Commission (ERC) has issued a resolution reminding distribution utilities and generation companies that the Competitive Selection Process (CSP) will take effect as scheduled on Saturday.
In its Resolution 01, Series of 2016, the ERC reiterated on Wednesday that the effectivity of the implementation of ERC Resolution 13, Series of 2015, entitled “A Resolution Directing All Distribution Utilities (DUs) to Conduct a Competitive Selection Process (CSP) in the Procurement of Their Supply to the Captive Market” will be on April 30.
The CSP Resolution requires Distribution Utilities (DUs) to undertake CSPs before entering into power supply agreements (PSA) with generation companies.
Thus, PSAs entered into by DUs and generators that are not yet covered by the CSP resolution must be filed with the ERC before the close of business hours on Friday, April 29. After that date, no PSA filed with the ERC will be docketed unless it has undergone a CSP.
“The distribution utilities and the generation companies are enjoined to comply with the requirement on the conduct of a competitive selection process before entering into a power supply agreement to promote transparency in the procurement of power and elicit the best price offers, which would mean a lower pass-on charge to electricity consumers,” ERC Chairman and CEO Jose Vicente Salazar said.