The Energy Regulatory Commission (ERC) reminded distribution utilities (DUs) and electric cooperatives (ECs) that an emergency power procurement may be immediately implemented provided their rates are not higher than the average.
“It’s in the rules. If you have an emergency procurement, you can immediately implement it but the tariff can’t be higher than the latest approved tariff for the same tech in the same area,” said Monalisa Dimalanta, ERC chairperson.
Dimalanta issued the reminder in the wake of a number of requests for exemption from the mandatory competitive selection process (CSP) the DOE received in recent months.
“Instead of issuing show cause orders, we just remind them they can do emergency (procurement) but here is the tariff you can collect. The process of refund and show cause is complicated isn’t it? So, instead of reaching that point, we just remind the DUs and ECs,” Dimalanta explained.
According to her, the ERC should soon release a matrix of approved rates for emergency procurement.
She acknowledged the consuming public is not generally aware that a rate matrix exists although the distribution utilities and electric cooperatives do.
One will be issued after the long Lenten holidays as people report back to work and henceforth will be issued regularly for the consuming public and as provided by the CSP circular, Dimalanta said.
Some distributors and cooperatives are forced to apply for CSP exemption as under its rules, a power supply agreement may only be signed with a generation company after calling for and receiving at least two qualified bids from generation companies.
DUs and ECs are only allowed direct negotiations with power suppliers only after at least two failed bidding or in emergency cases.
