The National Electrification Administration has stopped the Palawan Electric Cooperative from conducting its planned competitive bidding for its more or less 50 megawatt main power supply source this year, stating it will instead directly undertake the task.
In a letter addressed to the Palawan Electric Cooperative (PALECO) Board of Directors, NEA Administrator Antonio Mariano Almeda invoked the failure of PALECO to undertake a competitive selection process (CSP) within the one-year period allowed for them to do so.
“Under Article 13.1 of NEA Memorandum No. 2023-057, consistent with 5.4 DOE DC2023-06-0021, in case an electric cooperative (EC) is unable to complete the CSP one (1) year before the scheduled date as indicating the Power Supply Procurement Plan (PSPP), the NEA shall undertake the CSP for and on behalf of the EC,” Almeda said.
Almeda also described its intervention as based on “exigency of the request of the House Committee on Energy” which recently conducted a public hearing on the power situation under the PALECO franchise.
“NEA shall conduct the CSP for the procurement of power supply for PALECO’s Main Grid after PALECO’s 2024 PSPP for its Main Grid is duly approved and posted on the DOE CSP e-based portal,” Almeda said.
Almeda said that during the hearing held on February 5, 2024, several members of the House of Representatives requested that NEA conduct the CSP for the procurement of power supply for PALECO.
“Further instruction and directive to conduct the CSP shall be issued to the PALECO Management upon the approval and due posting of PALECO’s 2024 PSPP for its Main Grid,” Almeda said.
In response, PALECO finds no problem with NEA overseeing the CSP since it would accelerate the procedure.
Cooperative information officer Maria Janelle Rebusada stated that following the recent House probe, they visited the offices of the DOE and NEA to request assistance in expediting their CSP, with the goal of completing it within six months.
“Ang concern lang is yong basis na ginamit. Lahat ng CSPs namin, according sa aming PSPP, were conducted naman. After talaga ng inquiry, pumunta kami ng DOE, yong topic is yang [50 megawatts]. Ang proseso kasi ng CSP nag-i-start sa creation ng bids and awards kaya kino conduct na siya kasi meron na kaming Bids and Awards Committee (BAC), pero yong actual na proseso, halimbawa, approval ng PSPP for discussion na ongoing ngayon with DOE and NEA,” she said.
She mentioned that this would be followed by the identification of technical requirements, leading to the formulation of terms of reference.
“Essentially, kino conduct na siya ni PALECO. After ng inquiry, noong pumunta na kami, talaga namang nag-uusap na si NEA, DOE, at PALECO na ang target within six months ay matapos ang CSP kasi nga ina-anticipate namin na October, tapos na yong EPSA 1, dapat by that time mayroon na kaming supply na pamalit kahit paano. Kung ma-e-extend ng mga dalawa hanggang tatlong buwan lang na magbabayad pa ng mahal ang MCOs,” she explained.
“Noong pumunta kami sa DOE at NEA, nag-seek talaga kami ng assistance na mabilis ang proseso ng CSP,” she stated.
She added that their priority is to ensure the completion of the CSP before Delta P’s EPSA expires in October 2025. Rebusada emphasized that this was the central point of discussion during the meeting, and consensus was reached among all participants.
“Malaking tulong kay PALECO na tutulungan kami ni NEA na mag-conduct ng CSP. Habang hindi pa naglalabas si DOE ng order na ibalik ang subsidy, matutulungan si PALECO in ensuring na hindi na kakailanganin na mag EPSA ulit at bumalik na sa tamang rate in the future,” she added.
