DOE to release list of power deals covered by SC ruling

MANILA, Philippines — The Department of Energy is coming out with a list of power supply agreements (PSAs) affected by the Supreme Court decision that requires all power distributors to conduct competitive bidding for power deals.

In an interview yesterday, DOE Assistant Secretary Redentor Delola said the list of affected PSAs would be determined by the Energy Regulatory Commission (ERC), which will be transmitted to the DOE.

“We’ll have to make the list public so that everybody will know which PSAs are affected.

 All of the PSAs affected and considered terminated will have to undergo CSP (competitive selection process),” Delola said.

The recent SC decision invalidated all PSAs signed after Nov. 7, 2015, the original implementation of the CSP policy, which requires distribution utilities and electric cooperatives to undertake competitive bidding to secure PSAs with generation companies.

The ERC implemented the CSP policy on April 30, 2016 to give power players a transition period to comply.

It said over 90 PSAs had been hit by the CSP directive, including the seven contracts of Manila Electric Co. (Meralco) with over 3,500 megawatts (MW) in capacity.

“The decision of the Supreme Court is very clear. For Meralco, they have to do it fast. Don’t waste time,” said Energy Secretary Alfonso Cusi.

Meralco earlier warned of massive implications in the power industry if the SC decision would be implemented as it is.