DOE issues Advisory on the Implementation of DOE Department Circular No. DC2023-06-0021

The Department of Energy (“DOE”), to provide clarification on the implementation of Section 7 of Department Circular (“DC”) No. DC2023-06-0021, and in consideration of the roles and responsibilities of the National Electrification Administration (“NEA”) and the Energy Regulatory Commission (“ERC”) under Sections 5 and 6 thereof, respectively, issued an Advisory on 31 August 2023 for the smooth transition of the new Competitive Selection Process (“CSP”) Policy until the respective guidelines by the ERC and the NEA are issued (the “Advisory”).

Among the clarifications include the implementation of Section 7 of DC No. DC2023-06-0021, which shall be as follows:

• Except for Emergency Power Supply Agreements (“EPSA”), all pending applications for Certificate of Exemption from the Conduct of Competitive Selection Process (“COE-CSP”) received by the DOE by 18 July 2023, either with complete or incomplete documentary requirements, shall be processed in accordance with DC No. DC2018-02-0003, as amended and supplemented by DC No. DC2021-09-0030. Requests with incomplete documentary requirements shall be required immediately to submit all lacking documents to the DOE before the issuance and effectivity of the ERC guidelines on the CSP. Otherwise, the application shall be deemed disapproved and shall be reverted to the concerned distribution utility (“DU”).

• Applications for COE-CSP received by the DOE after 18 July 2023 shall no longer be processed. Thereafter, all instances exempted from CSP shall be submitted or applied with the ERC.

• All pending applications before the DOE on the selection process for 2 representatives from the captive customers to the Third-Party Bids and Awards Committee (“TPBAC”) prior to 18 July 2023 shall be evaluated in accordance with DC No. DC2018-02-0003, as amended and supplemented by DC No. DC2021-09-0030, subject to submission of complete documentary requirements, as applicable, to the DOE before the issuance and effectivity of the ERC guidelines on the CSP. Otherwise, the application shall be deemed disapproved and shall be reverted to the concerned DU.

• Applications on the selection process for 2 representatives from the captive customers to the TPBAC received by the DOE on or after 18 July 2023 shall no longer be processed. Such applications shall be reverted to the concerned DU. Accordingly, the NEA, in the case of electric cooperatives (“ECs”), and the ERC in the case of DUs other than ECs, shall be responsible for ensuring the transparency and fairness of the TPBAC selection process, until the issuance by the ERC of the applicable guidelines.

Aside from the above, the Advisory also included clarifications for the implementation of Section 4.3 of DC No. DC2023-06-0021. 

The Advisory also provided that the succeeding activities of ongoing CSPs shall continue to observe the CSP process applicable at the time it commenced. All DUs shall expeditiously conclude the remaining CSP activities within the prescribed timeframes.

Meanwhile, all DUs with issued COE-CSP for embedded generators for a contract capacity of less than 10 MW, shall apply for the ERC’s approval of the corresponding Power Supply Agreements, subject to the Commission’s rules and procedures.

Finally, all EPSAs intended to be executed before the effectivity of the ERC Guidelines pursuant to DC No. DC2023-06-0021 shall be directly filed with the ERC for its approval in accordance with Item No. I.A. of the 03 April 2023 DOE Advisory on the Moratorium and DC No. DC2018-02-0003, as amended and supplemented by DC No. DC2021-09-0030.
The full Advisory may be accessed here.