The Energy Department asked power industry stakeholders to comply with the Supreme Court ruling ordering them to undergo a competitive selection process on power supply agreements.
“We will have a meeting with Meralco [Manila Electric Co.], with all of the stakeholders this week. We will tell them, go CSP. If you don’t want to undertake the CSP, we will come out with a circular that we will do the CSP for you,” Energy Assistant Secretary Redentor Delola said.
The ruling is expected to affect 95 PSAs including some that are already in effect.
The Supreme Court ruling required all PSA applications submitted by distribution utilities on or after June 30, 2015 to comply with the CSP or bidding in accordance with the 2015 circular of the DoE.
The Supreme Court ruled the power purchase cost after compliance with the CSP should be retroactive to the date of the effectivity of the PSA, but in no case earlier than June 30, 2015, for purposes of passing the purchase cost to the consumers.