The Energy Regulatory Commission (ERC) said the Department of Energy (DOE) must issue definite guidelines on the procurement by the National Grid Corporation of the Philippines (NGCP) firm ancillary service contracts under competitive selection process (CSP) in 30 days.
Firm contracts would reserve the electricity produced by a generator to be solely for the use of NGCP regardless if it will be utilized or not and are charged with higher rates.
CSP is the bidding to procure the cheapest source of power before an agreement can be made and approved by regulators.
In a virtual Senate hearing yesterday, ERC chair Agnes Devanadera, said a written guidance of the DOE is needed for the special case of conducting CSP in less than 30 days as instructed by the Senate..
“Under existing CSP rules, distribution utilities are given 180 days to conduct the bidding but now, we are instructed to do this in just 30 days,” Devanadera said.
The entire procedure involves a selection process for members of the bidding committee approved by DOE as well as the crafting and approval of the terms of reference.
“After these approvals, that’s only the time the process will start and this is the reason why they are given 180 days,” Devanadera said.
“The SC (Supreme Court) said the DOE has the power to issue CSP rules. We want to be able to deliver on this but we need clear rules without ambiguity,” Devanadera added.
NGCP earlier this week said it will start a CSP for its ancillary services requirement.
At the hearing, DOE Undersecretary Emmanuel Juaneza said the agency and the ERC have formulated a circular on the matter but that it has to undergo public consultations.
Meanwhile, Senate committee on energy chairman Sherwin Gatchalian urged the DOE to form a task force that will find ways to resolve the projected power shortages next week until the last week of July.
“We need to take this seriously. Data is showing it might happen. The possibility is high and I urge the DOE to convene a preventive task force to come up with a plan and submit to this committee the plan as early as next week Monday,” Gatchalian said
