Group wants end users in CSP review

MANILA, Philippines — Consumer groups have called on the Energy Regulatory Commission (ERC) to include end-users of electricity in the review of the competitive selection process (CSP) policy. 

Several consumer groups and energy advocates marched to the ERC yesterday to protest the non-inclusion of consumers in the discussions for CSP after the Supreme Court (SC) invalidated power supply agreements (PSAs) that did not go through competitive bidding.

The groups, which include Murang Kuryente, Power for People Coalition, Philippine Movement for Climate Justice, and Sanlakas, have submitted a letter to ERC chairperson Agnes Devanadera requesting for an audience to present the thoughts of consumers concerning the selection process for PSAs.

“ERC has talked to generation companies, they have talked to distribution utilities, but they have yet to talk to the people who would pay the price for the result of their talks – the consumers,” Murang Kuryente spokesperson Gerry Arances said.

ERC previously said it was coming out with streamlined rules on CSP, including a format for PSAs, for all power players to follow to secure supply in the grid and to protect consumers from sudden spikes in power rates.

The Department of Energy and the ERC have been working to harmonize their respective CSP rules for all distribution utilities (DUs) to comply with in securing power supply for their respective franchise areas.

Alongside the issuance of the CSP rules is the release of the PSA format for all power players, which will include a provision on the procurement of replacement power, especially in times when the generating power plant undergoes forced maintenance shutdown.

In coming out with the streamlined CSP rules, ERC said it has engaged all stakeholders—including consumers—through public consultations (pubcons).

“Engagement with stakeholders—may it be DUs, (generating companies) gencos or consumers—on the CSP was done through public consultations,” ERC spokesperson Floresinda Digal said.

In fact, she said the ERC has included comments from consumers in the CSP draft.

“Comments on the second and third draft were likewise received. In fact, some of their suggestions were made part of the current CSP draft,” Digal said.

The CSP rules will become the basis of all PSAs signed on or after June 30, 2015 and were struck down by the SC in its latest ruling.

To recall, the DOE had issued a circular mandating all DUs to conduct CSP in securing PSAs effective June 30, 2015.

But this was set aside when the ERC issued a resolution on October 20, 2015,  stating that DUs may adopt any accepted form of CSP pending formal process from the regulator.

The resolution also directed DUs to comply with the CSP policy starting Nov. 7, 2015, but this was deferred to April 30, 2016 to allow a transition period for power players.

Following the SC decision, the ERC summoned the concerned electric power industry stakeholders and required them to submit information that will enable the agency to assess the possible impact of the high court’s ruling.

Meanwhile, MSK said it has been at the forefront of the campaign to lower electricity prices since its establishment the previous year.

The group welcomed the memorandum of agreement (MOA) signed by the DOE and the Philippine Competition Commission (PCC) to coordinate their actions on promoting market competition and investigating collusions in the power sector.

“We have been asking the government to investigate the cartel-like behavior of power companies for so long. This agreement between the PCC and the DOE is a welcome development and a step forward to putting consumers first in our electricity policy, as it should be,” Arances said.