The Regional Development Council (RDC) is pushing for a more transparent procurement process for the power supply requirements of electric cooperatives in Eastern Visayas.
The council, through the approved Resolution No. 83-A on Dec. 6, 2023, underscored the need of the active participation of local stakeholders in the mechanism and processes to ensure that the interest of the consumers is prioritized.
The resolution called on the Region 8 Joint Third Party Awards Committee (R8 JTPAC) to ensure transparency in the region’s Joint Competitive Power Supply Procurement (R8 JCPSP).
“It emphasized not just the sharing of information and documents but also the active participation of local stakeholders in the JCPSP mechanisms and processes to ensure that consumer interests are always prioritized,” RDC vice chair Meylene Rosales, regional director of the National Economic and Development Authority, said in a phone interview Thursday.
The resolution comes as the region posted one of the highest electric rates in the country in 2022, as global oil and coal prices skyrocketed due to the lingering effects of the Covid-19 pandemic, Indonesia’s coal export ban, and the Russian-Ukraine War.
Rosales said the high power cost has been hurting businesses and may discourage potential investors.
As of June 2023, the average electricity price per kilowatt hour in the region is PHP13.04, higher than the PHP11.91 rate of Manila Electric Company (Meralco).
“Despite hosting one of the country’s largest electric power producers, the Tongonan Geothermal Power Plant in Kananga, Leyte, the region continues to source most of its power needs from coal-fired power plants from outside the region,” Rosales added.
The RDC noted that the R8 JTPAC conducted the JCPSP from July 24 to December 14, 2023, for the aggregated baseload (33–34 megawatts) and redundant power supply (8–58 megawatts) requirements of 11 electric cooperatives in Eastern Visayas for the period 2023–2021.
The council reported that JCPSP commenced after the Energy Regulatory Commission issued orders on April 19, 2023, directing the 11 electric cooperatives in the region to terminate their Power Purchase and Sale Agreement with the Bataan-based coal-fired power plant, GNPower Dinginin Ltd. Co.
“The significance of R8 JCPSP’s implications for electricity prices and services and the transition to renewable energy underscores the need for transparency, such that local governments, civil society, the business sector, people’s organizations, academia, and the media should have access to crucial information and documents and be granted participation in the R8 JCPSP mechanisms and processes representing the captive market that are unaffiliated to the electric cooperatives,” the RDC stated.
“Considered and recognizing the potential impact of CSP for power reliability and quality within the region’s energy market, this council finds it crucial to ensure greater transparency and accountability in the R8 JCPSP for the power requirements of the region,” the RDC added.
The council pushed for a more transparent procurement process as requested by RDC-Development Administration Committee co-chairperson and private sector representative for disaster resilience, Judah Aliposa. (PNA)
