By Juzel L. Danganan
MANILA, Aug. 23 (PNA) – Former Department of Energy (DOE) Secretary Francisco Viray has questioned the third party hires required for the competitive selection process (CSP) for distribution utilities (DUs) and electric cooperatives (ECs) in securing power supply agreements (PSAs).
In an interview, he said the requirement for third party consultants “will only create a new industry for consultants.”
Viray, who is the current president of Trans-Asia Oil and Energy Development Corp., added the third parties might also decide partially due to their connections with some companies.
The DOE, under Circular No. DC 2015-06-0008, said all DUs shall procure PSAs only through CSP conducted through a third party duly recognized by the Energy Regulatory Commission (ERC) and DOE.
For ECs, however, the circular noted the third party has to be recognized by the National Electrification Administration (NEA).
According to the circular, distribution utilities should aggregate their uncontracted power requirements to procure a PSA. The DOE cited the former aggregated bidding held by the Central Luzon ECs and Region 1 ECs was more efficient, with its lower expected price contract.
Meanwhile, the implementing rules and regulations (IRRs) for the circular is still in the works and will jointly be issued by the DOE and the ERC. They will also come up with qualifications and terms of reference for the selection of the third party.
It will serve as the guide for both the DU and third party on how to design and execute CSP.
Earlier, DOE officer-in-charge (OIC) Secretary Zenaida Monsada said ongoing negotiated contracts could still be passed until the IRR is completed. (PNA)