Electric coops buck DOE circular on gencos

MANILA, Philippines - Electric cooperatives from Luzon are up in arms over a circular from the Department of Energy (DOE) that forces them to deal only with three generating companies (gencos), a former lawmaker said yesterday.

Former Agham party-list Rep. Angelo Palmones yesterday urged the Energy Regulatory Commission (ERC) to reject the bidding selection process under Department Circular 2015-06-0008 signed by former energy secretary Jericho Petilla.

“Last I know we are no longer under martial law. We fear that with this situation, electric coops will be forced by the DOE to bid for their requirements,” Palmones said.

“This is an injustice and this circular has no legal leg to stand on. It is legally infirm on all aspects,” he said.

He appealed to DOE officer-in-charge Zenaida Monsada to recall this circular and for ERC Chairman Vicente Salazar to reject the same.

He said the DOE circular mandates all electric cooperatives in Luzon, and in the entire country, to forcibly enter into a bidding procedure for all their power contracts once the ERC approves its implementing rules and regulations.

He said the controversial circular that will result to higher electricity rates, was issued purportedly without the benefit of public consultation.

Palmones said electric cooperatives should be allowed to negotiate directly with their various suppliers to get the least cost possible.

He said the electric cooperatives could have struck a better deal if they were not held down by the competitive selection process (CSP) as the circular termed the bidding process.

“With CSP, however, they were reportedly limited to the three gencos that bidded and the EC had no control over their prices,” Palmones said.

He said it seems the DoE wants to pull a fast one on ERC without it taking responsibility in case this mechanism fails.

“Unfortunately for ERC since they will be the ones who will issue the implementing rules, the responsibility for any fiasco in case this fails will fall on them. Agham urges a total and unequivocal rejection of this flawed and anti-consumer circular,” he said.