Wednesday, May 04, 2016
By ERWIN P. NICAVERA
THE Business Chambers of the Negros Island Region is fully supporting the competitive selection process for power supply purchase agreement set by the Department of Energy (DOE), but the implementing rules and regulations should undergo public hearings in all regions.
This was relayed Tuesday by Frank Carbon, regional governor of the Philippine
Chamber of Commerce and Industry (PCCI) in Western Visayas and Negros
Occidental.
Carbon said PCCI, along with the Negros Oriental Chamber of Commerce and
Industry (NOCCI) and Metro Bacolod Chamber of Commerce and Industry (MBCCI), has
already sent a position paper to DOE last April 29.
It was also submitted to Bacolod City Mayor Monico Puentevella and Negros Occidental Governor Alfredo Marañon Jr. on Monday, he added.
Based on the said petition paper, business groups are opposing the power aggregation plan as it wittingly and naturally eliminates small power generators in the bidding process by creating an artificially high entry barriers like low price and high volume requirements for small players.
“Eliminating the small power generators will eventually lead to expensive power supply like the case of the oil deregulation law and the routes and rates deregulation of the shipping industry,” Carbon said.
DOE through Circular 2015-06-0008 mandates all distribution utilities to undergo competitive selection process in securing power supply agreement.
The agency said this is to ensure the quality, reliability, security and affordability of the supply of electric power; ensure transparent and reasonable prices of electricity under free and fair competition; enhance the inflow of private capital and broaden the ownership base of power utilities; and protect the public interest as it is affected by the rates and services of electric utilities and other providers.
Carbon, however, said electric utilities should not specify the type of fuel to be used by power generators accredited to participate in the bidding process. Also, the power generators to be accredited could either be an existing plant or newly-constructed, he added.
“We would like to reiterate that we fully support the competitive selection process but the bidding should be done individually by the electric utilities, and not by aggregating or consolidating the power requirements of two or more electric utilities,” the business groups added.
Published in the Sun.Star Bacolod newspaper on May 04, 2016.
