ERC Seeks Comments on the Proposed Rules for Power Supply Contracting

The Energy Regulatory Commission (ERC) has posted the 3rd Draft of the proposed “Rules Governing the Procurement, Execution, and Evaluation of Power Supply Agreements Entered Into by Distribution Utilities for the Supply of Electricity to their Captive Market” on its website (www.erc.gov.ph) to gather the stakeholders’ comments prior to the finalization of the said Rules.

The proposed Rules aim to prescribe guidelines on default contractual provisions and minimum standard format in order to make the process of power supply contracting clear and efficient.  The said Rules will streamline the review and approval process of Power Supply Agreements (PSAs), as it seeks to promote transparency in the selection and contracting of Distribution Utilities (DUs) while promoting competition among Generation Companies (GenCos).  

“The third (3rd) draft of the proposed “Rules Governing the Procurement, Execution, and Evaluation of Power Supply Agreements Entered Into by Distribution Utilities for the Supply of Electricity to their Captive Market” contains some new features or provisions that are meant to protect the consumers’ interests, like the inclusion of a Fixed Bid Price in the Terms of Reference (TOR) and a new section detailing the prohibited acts, fines and penalties, which include blacklisting. Another section was added on Unsolicited Proposal which pertains to project proposals submitted by GenCos or other entities authorized by the ERC to supply electricity to the captive market, that are not in response to a formal solicitation or request issued by a DU”, ERC Chairperson and CEO Agnes VST Devanadera stated.  

The proposed Rules and the pertinent annexes thereto are downloadable from the ERC’s website, and all interested parties are encouraged to submit their comments on the subject Rules, both in hard and soft copies using word format, on or before 29 March 2019.  Electronic copies may be sent to tariffs@erc.gov.ph.   

“The proposed Rules, which will be applicable to all DUs both on-grid and off-grid, GenCos, Independent Power Producer Administrators (IPPAs), and other entities authorized by the ERC to supply power to the DUs, provides fair competition by providing equal opportunity to all relevant stakeholders, and pursues to result to a reasonable and competitive pricing of generation rate to be charged to captive customers" Chair Devanadera added.