The Department of Energy (DOE) welcomed the Supreme Court’s ruling requiring all distribution utilities to undergo competitive selection process (CSP) in the procurement of power supply agreements.
“We can now move on to the extremely urgent tasks at hand, particularly putting new power projects back on track to help augment the country’s power supply for 2020 to 2022,” said DOE in a statement after the SC shot down the sweetheart deal between Manila Electric Co. and its sister firms which the Energy Regulatory Commission approved without any bidding in 2016.
In a decision penned by Senior Associate Justice Antonio Carpio, the SC ordered all PSA applications filed by electricity firms with the ERC on June 30, 2015 or later are “required to comply with the CSP.”
The DOE said it would implement the CSP policy it adopted as early as 2015 to ensure the transparency in the signing of power supply contracts and ensure the least cost for the benefit of consumers.
“We sincerely hope the Supreme Court ruling ushers in a new era in power procurement – an era of true competition, where all deserving power suppliers with efficient technologies, low rates, and fair contract terms are welcomed into the market,” the DOE said.
“These recent developments would help us evaluate how we could facilitate bringing in new capacities into the grid. We would also be keeping an eye out for those projects which could be completed faster and conduct a quick CSP to help fast track the process,” it added.