The Energy Regulatory Commission said over the weekend all electric distribution utilities entering into emergency power supply agreements with generation companies through negotiated procurement should comply with the guidelines set by the Department of Energy.
“Under the rules of DOE, if you conduct emergency procurement, you can do it and immediately implement it, but the tariff can’t be higher than the latest ERC-approved tariff for the same technology in the same area,” ERC chairperson Monalisa Dimalanta said.
The rules are contained under Department Circular No. DC 2021-09-0030.
“DOE has been receiving requests for exemptions so we said instead of issuing show cause orders, let’s remind them that they can do emergency [procurement] and this is the tariff that you can collect,” Dimalanta said.
She said the ERC was trying to avoid issuing show cause orders, so they issued an advisory reminding the DUs and ECs on compliance with the DOE rules.
Dimalanta said they would soon release the rates to guide the DUs.
“The public don’t know the latest [rates]. So what we will do, we will do it for the first time, after Holy Week. We will issue the latest approved, so people in their area will already know that this is the rate in their area and then will do it regularly,” Dimalanta said.
Manila Electric Co., the country’s biggest power distributor, is seeking EPSA approval from the DOE after some of its power supply agreements and competitive selection process or bidding failed.
Under DOE rules, the EPSA should not exceed one year and should be filed immediately before the ERC upon the issuance and within the effectivity of the certificate of exemption from the CSP “provided, that the DU shall prove and certify that it has performed all the necessary and required due diligence, and solicited proposal from at least one power supplier for EPSA to address the emergency situation and to avert and/or mitigate its consequences.”