THE ENERGY Regulatory Commission (ERC) is asking for the industry’s comments on the third draft of the proposed rules governing the procurement, execution, and evaluation of power supply agreements (PSAs) entered into by distribution utilities for the supply of electricity to their captive market.
The proposed rules will prescribe the guidelines on default contractual provisions and minimum standard format in order to make the process of power supply contracting clear and efficient.
The rules will also streamline the review and approval process of PSAs for transparency in the selection and contracting of distribution utilities, while promoting competition among generation companies.
In a statement, ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said the third draft of the proposed rules contains some new features or provisions meant to protect the consumers’ interests.
These features include the inclusion of a fixed bid price in the terms of reference (ToR) and a new section detailing the prohibited acts, fines and penalties, which include blacklisting.
She said another section was added on unsolicited proposals, which pertain to project proposals submitted by power generation companies or other entities authorized by the ERC to supply electricity to the captive market that are not in response to a formal solicitation or request issued by a distribution utility. — Victor V. Saulon