MANILA, Philippines — The Department of Energy (DOE) has issued the revised guidelines for qualified third party (QTP) program to allow private sector participation in the electrification of off-grid areas.
Signed by Energy Secretary Alfonso Cusi last November, the updated QTP guidelines provide a policy and regulatory environment that is more conducive to the participation of private sector to fasttrack the total electrification target of the government.
QTP is the alternative electric service provider qualified and authorized to serve unserved and underserved areas to attain and accelerate the total electrification of the country.
Under the QTP program, other power players will be allowed to provide electric service in remote and unviable areas that the franchised distribution utility (DU) is unable to service.
The DOE will come out with a list of QTP service areas within 40 days since the effectivity of the policy.
It will also accept nominations of unviable, unserved, and underserved areas by QTP proponents which are not part of the list.
These areas will be subjected to competitive bidding, with bid documents and terms of reference (TOR) to be submitted by the DU to the DOE for review and evaluation.
QTP proponents shall submit its bid proposal not later than 40 days from the publication of the bid invite.
The winning bidder shall file an application with the Energy Regulatory Commission (ERC) for the authority to pperate, which shall include the QTP full cost recovery rate (FCRR).