DoE clarifies competitive bidding rules
Credit to Author: JORDEENE B. LAGARE| Date: Mon, 31 Dec 2018 16:15:47 +0000
THE Department of Energy (DoE) has clarified certain guidelines for distribution utilities (DUs) seeking to secure power deals through competitive bidding.
In an advisory, the DoE said all power supply agreements (PSAs) should undergo the competitive selection process (CSP), as mandated by Department Circular DC2018-02-0003 issued in February 2018.
The particular provision calls for the creation of a five-member, third-party bids and awards committee (TPBAC) to oversee the CSP, with three of its members coming from the DU and the rest from customers not directly connected to the utility.
The TPBAC is comprised of a DU officer with a technical know-how in operating a utility, a DU officer/employee knowledgeable about any local or international CSP, a lawyer, a finance officer or accountant acquainted with electricity pricing, and a technical person or someone with experience on local or global competitive bidding. One of the last three shall represent the utility.
The DoE recognized that some franchise areas may not have enough available specified professionals. Hence, it allowed the inclusion of a registered captive customer with knowledge/experience in the fields of accounting, economics, finance, law, and engineering, as well as a customer who has an expertise in local or global competitive bidding scheme. The same applies to the composition of the joint TPBAC.
“This will ensure that the possible non-availability of the specified professionals shall not hamper the conduct of a CSP for the procurement of power supply. This is especially true with respect to off-grid areas in the country,” it said.
The DoE made the clarification in the circular introducing CSP in signing PSAs to foster competition and transparency and meet market demand at minimum cost. This calls for the compliance with the standard procurement procedures and documents in securing electricity for customers.
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