ERC conducts thorough CSP guidelines review
‘It compels us to evaluate the CSP rules to see what improvements can be made to ensure commitments are delivered to consumers.’
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‘It compels us to evaluate the CSP rules to see what improvements can be made to ensure commitments are delivered to consumers.’
The Energy Regulatory Commission or ERC is holding a "thorough review and revision" of Competitive Selection Process or CSP guidelines so it can fully strengthen the sector, especially in light of recent cancellations of power deals that may threaten power supply stability.
The Department of Energy Circular DC2018-02-0003 entitled, "Adopting and Prescribing the Policy for the Competitive Selection Process in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive Market" governs the CSP.
The CSP refers to the process whereby a power supplier is chosen to supply the electric power requirements of a distribution utility through transparent and competitive bidding to secure supply.
As per the DoE order, the ERC is required to develop and publish the CSP guidelines.
Focus group discussion
As such, the Commission conducted focus group discussions with various stakeholder groups last 26 to 28 July to assess the drafted guidelines.
However, based on the results of the discussions and the comments solicited from stakeholders, the ERC was compelled to conduct a thorough review and revision of the Draft CSP Guidelines.
"In this regard, the Commission will issue a revised draft of the CSP Guidelines that will then be subjected to another round of public consultation before finalizing the guidelines," the ERC said.
"We have duly notified the Department of Energy on Friday, 25 August 2023, of the necessity to consider the comments of stakeholders and the need to revise the Draft CSP Guidelines further," it added.
Ensure consumer protection
In a previous interview, ERC chairperson Atty. Monalisa Dimalanta already conveyed that the power watchdog wants the guidelines to ensure consumers will be protected in the long run.
"We saw last year how even recently awarded power supply agreements were tested but they failed to withstand the challenges resulting in disputes and termination," Dimalanta told reporters.
Evaluate CSP rules
"So it compels us to evaluate the CSP rules to see what improvements can be made to avoid this to ensure commitments are delivered to consumers," she said.
The CSP policy aims to promote the needs of the consumers as presented in the Distribution Development Plan and Power Supply Procurement Plans of the DUs.
The DU, on the other hand, should embrace the principle of technology neutrality and consider the reliability of energy services in the least cost manner. It should also ensure that it can meet the demand of its Captive Market at any given time.
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