DoE, Meralco work out CSP arrangements

The Department of Energy said on Friday it is coordinating with Manila Electric Co. on the timely conduct of the competitive selection process as spelled out in a Supreme Court decision.

The DoE said Meralco agreed to expedite the conduct of the CSP to ensure uninterrupted power supply in Luzon. 

The high court earlier ruled that “all Power Supply Agreement (PSA) applications submitted by Distribution Utilities (DUs) to the Energy Regulatory Commission (ERC) on or after 30 June 2015 shall comply with the CSP based on DoE’s 2018 Department Circular.”

Energy Secretary Alfonso Cusi said the department and Meralco were in full agreement that the conduct of CSP should be certified as urgent given the need to ensure a reliable and steady supply of power at all times. 

“We are reiterating our initial statement on this matter that we must do it fast, and there must be no delays in the implementation of CSP for Meralco and for other distribution utilities and electric cooperatives,” Cusi said. 

“We must act fast because demand continues to grow and we want to be ready to supply the needs of a growing market to ensure that the country will maximize its growth potential,” he added. 

Under the CSP, electric cooperatives and distribution utilities must conduct a bidding on power supply contracts to ensure transparency and fair competition.                 

“We want to ensure accountability from power providers that supply is available and that they are ready for any eventuality, which is their responsibility as a player in a commodities sector,” Cusi said. 

Meralco serves 6.6 million customers in 36 cities and 75 municipalities in Luzon and supplies about 66 percent of the region’s total demand.

Topics: Department of Energy , DoE , Manila Electric Co. , Meralco , competitive selection process
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