‘Third party for CSP’ on supply procurement out of ERC’s agenda

by Myrna Velasco – December 30, 2015

from Manila Bulletin

The engagement of a third party to undertake competitive selection process (CSP) on the supply procurement of distribution utilities (DUs) is no longer in the discussion route as far as the Energy Regulatory Commission (ERC) is concerned.

ERC Chairman Jose Vicente B. Salazar told reporters that the CSP resolution they issued in October is already the final version that they came up with.

“That’s already it… so far, there’s no discussion anymore on the engagement of a third party (for CSP),” he stressed.

So far, this differs on the stand of the Department of Energy (DOE), with Secretary Zenaida Y. Monsada earlier hinting to reporters that they would still push for guidelines that will tackle the third party and aggregation concerns on the CSP.

Salazar has indicated that if the DOE would still want to open discussions, they are amenable to sit down with them and flesh out concerns on that particular issue.

He cannot give any assurance though that they will eventually agree to the ‘third party’ proposal as this is a matter that the ERC will have to decide on as a collegial body.

The third party proposition in the DOE version of the CSP had been held most controversial, hence, some parties have raised opposition to the policy early on.

It was gathered that the ERC-designed CSP had been more acceptable to the stakeholders, primarily to power distribution giant Manila Electric Company.In fact, the utility firm has already started sending out tender notice for its 2016 power supply requirements within the ERC-crafted CSP frame.

The aggregation proposal – which will likely amalgamate weak and strong electric cooperatives in the supply auction – was also fiercely questioned because of ‘subsidization tendencies’ of such arrangement.