Industries laud power supply deals

FPI lauded the Department of Energy (DoE) for coming up with a circular that required distribution utilities to procure power through the Competitive Selection Process (CSP) administered by the Third-Party Bids and Awards Committee constituted pursuant to the circular. #DoE #FPI

MANILA — The Federation of Philippine Industries (FPI) on Saturday lauded the signing of Power Supply Agreements (PSA) that will deliver to Meralco 1,200 megawatts (MW) and 500 MW of capacity effective 26 December 2019.

FPI chairman Jesus L. Arranza said the additional contract capacity will result in additional savings and, ultimately, least cost to consumers.

Consumers are projected to enjoy total savings of around P13.86 billion per year or a rate reduction of P0.41 per kWh from the PSA.

The group also believes that one of the terms of the PSA emphasizing that the generator companies will also be liable to pay a fine if they are unable to deliver power will mean more consistent power supply for all businesses, which will positively impact and benefit industry operations, lower costs, consequently leading to more empowered consumers.

“FPI welcomes the news of this much-needed additional power, to meet the growing demand of our country. We welcome the entry of any and all generation companies interested in contributing to the grid, in order to create a more secure power supply situation for all industries, and ultimately, all consumers,” said Arranza.

FPI lauded the Department of Energy (DoE) for coming up with a circular that required distribution utilities to procure power through the Competitive Selection Process (CSP) administered by the Third-Party Bids and Awards Committee constituted pursuant to the circular.

FPI stated, “The organization believes the correct and proper process was indeed prescribed by the DoE, and we thank the government for its hands-on approach with the CSP. As the entire process was personally witnessed by representatives from the DoE, industries can rest assured that the results are fair, transparent, and most importantly, beneficial to all customers and consumers of power.”

“This is only the first step, but FPI’s vision for CSP is for more and more generation companies to join the process and participate in the bids,” Arranza said.

“FPI will gladly support the power industry as it remains committed to signing partnerships that can deliver competitive electricity for all industries and customers. We laud the DoE for issuing the CSP Circular and facilitating a fair and transparent bidding process to ensure least cost,” he added.