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LKI 38TH PRESS STATEMENT
July 18, 2019
CONSUMER GROUP ENJOINS ALL POWER GENERATORS TO BID UNDER CSP TO ENSURE ADEQUATE POWER SUPPLY AT AT LEAST COST FOR THE COUNTRY .
In a statement , consumer group Laban Konsyumer Inc. (LKI) enjoined All power generator bidders and the Department of Energy (DOE), and called on all distribution utilities (DUs) and electric cooperatives to immediately conduct and implement a competitive selection process (CSP) in procuring their power-supply requirements following the recent Supreme Court decision. The group called on all power generation companies to bid so as to ensure adequate power supply and at the least cost to meet the growing electricity demand of the country. .
LKI President Vic Dimagiba said “that it is imperative that we add to our current power supply situation . Unfortunately, we have had more red and yellow alerts this year than in the past five years. We are already more than three years too late according to our energy timetable. It is important that CSP is undertaken and implemented immediately, and invitations to all bidders begin. The CSP process will ensure that the much needed power supply will be provided at the least cost possible, which will in turn benefit consumers. CSP itself was designed to ensure the best bids and the least costs to the consumers”.
LKI agreed with the DOE and supported the government in saying “All affected power industry players must catch up and push under the CSP those stalled supply agreements, as said by Energy Secretary Alfonso Cusi himself. We support the push by government to promote the growth of our country, and power is a major component in a country’s growth and economy. This is an urgent matter that demands that action must be taken now.”
Dimagiba continued by saying “there should be the participation of all power suppliers. CSP allows for the bidding of all power generators. The more power plants, the better… it is not the time to block power generators from bidding. We must encourage all interested parties to participate in CSP and bidding to save our country from a power situation crisis.”
LKI promised to be the consumers’ watchdog, making sure that CSP is followed with transparency, according to all the rules and regulations. The government said consultative meetings with the concerned stakeholders are already under way, and that power development in our country, particularly in Luzon, has been at a standstill for three years. Thus, the urgency for all bidders to participate.
Dimagiba highlighted “We can no longer afford any further delay. We need to act now with extreme urgency to make up for the lost time.”
At the same time, the group also directed the government to study annual supply demand projections for the next three years, and from 2023 to 2030 to ensure that they have sufficient supplemental power-supply levels to meet their respective franchise obligations in the years to come.
“We at LKI respect the decision of the Supreme Court , which held that all PSA applications submitted by DUs to the Energy Regulatory Commission [ERC] on or after June 30, 2015, shall comply with the Competitive Selection Process [CSP] in accordance with the 2018 DOE Circular [DC2018-02-0003] and its Annex ‘A.’ But we call on all bidder to join so as to ensure more power supply”.
LKI emphasized that as indicated in the circular, the DOE said it will closely oversee the competitive bidding process to guarantee that the exercise is conducted in an open, transparent, effective, efficient and equitable manner. For its part, LKI will watch over that the ERC and will work alongside the DOE by enforcing and implementing the relevant policies that have formulated, as well as all pertinent rules and regulations we have issued.
However, LKI suggested that should the process grossly fail, the DOE will not hesitate to enact all necessary measures to uphold the integrity and completion of the CSP.
Dimagiba said “We call on the full cooperation of all the energy industry stakeholders as the country works to improve the level and reliability of our country’s power supply.”
For any inquiries or concerns, you may reach LKI President Vic Dimagiba at 0917-812-5546. Visit our updated website at www.labankonsyumer.com and like us on Facebook and Twitter . Send any inquiry to email@example.com