CSPs on hold pending DoE OK

The Department of Energy (DoE) is holding off on issuing its Certificate of Conformity (CoC) for over 1,000 megawatts (MW) of power supply agreements under Meralco’s competitive selection process (CSP), as it awaits the decisions of both the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC).

In an interview with reporters on Friday, Energy Assistant Secretary Mario C. Marasigan said three CSPs are currently being reviewed: 200 MW of renewable baseload capacity, 600 MW of baseload supply, and a planned 450-MW mid-merit contract.

“Our response to Meralco is clear because they voluntarily submitted their competitive selection process to the PCC. So we said that we are just waiting for the comments from the PCC as well as the ERC,” Marasigan said.

A CoC from the DoE signifies that a power supply agreement complies with relevant policies and has undergone the required CSP review.

Antitrust body

Marasigan explained that while the ERC has traditionally served as the final approving entity for such procurements, Meralco’s recent CSPs were also submitted to the PCC for review. The DoE is taking a cautious stance to prevent conflicting regulatory actions.

“We don’t want to issue our conformity and then have it challenged by the PCC, or have the PCC release theirs and then it gets challenged by the DOE. We want to make sure that the ERC, PCC and DoE are aligned — just one unified position,” Marasigan said.

In a separate message, Meralco senior vice president and head of Regulatory Management Jose Ronald V. Valles confirmed that scrutiny by the PCC has become a standard requirement for all of the company’s competitive selection processes. He said Meralco must first seek PCC’s comments before submitting the deal to the DoE.

“The PCC requires it for all CSP of Meralco. Need to ask for their comments before filing it with the DoE,” Valles said.

Valles also said the 450-MW mid-merit supply procurement may be launched by the third quarter of the year, depending on the DoE’s approval of the Terms of Reference.