THE Energy Regulatory Commission (ERC) has directed all electric distribution utilities (DUs) entering into an Emergency Power Supply Agreement (EPSA) to comply with policies meant to protect consumers.
In an advisory released on Wednesday, the regulatory body reminded DUs on an ongoing moratorium on the issuance of a certificate of exemption from the conduct of the competitive selection process (CSP) being implemented by the Department of Energy.
Under CSP, a DU may sign a PSA with a generation company only after calling for, and receiving at least, two qualified bids from generation companies. It will be allowed to have direct negotiations with other power suppliers after at least two failed bidding procedures.
However, ERC said DUs can only procure for EPSAs “on account of force majeure or fortuitous event.” This arrangement will have to meet certain qualifications by the regulatory body.
The ERC also said EPSAs “shall be immediately implementable” with rates capped at the lowest approved generation tariff for the same technology in comparable areas which must apply until the body issues approval of the EPSA.
The regulatory body also emphasized that EPSA shall be immediately filed, upon signing and effectivity thereof with the ERC for approval, with the rates, terms and conditions to be applied retroactively for the entire term of the emergency procurement.
The ERC also mentioned that the procurement of supply via EPSA shall not be entitled to any form of subsidy, including the Universal Charge for Missionary Electrification for Small Power Utilities Group power plants in off-grid areas.
