Withdrawal of DoE circular sought
ANAK Mindanao (AMIN) Party-list and various organizations composed by consumer groups, business owners, and development workers are calling Department of Energy (DoE) to withdraw its proposed amendment that would allow unsolicited proposals to the Competitive Selection Process (CSP) in the procurement of distribution utilities of power supply agreement.
According to AMIN Rep. Amihilda J. Sangcopan, the circular issued by DoE on May 20, 2021, will set the framework that will only promote unsolicited proposals that are tailored fit to a sole power supplier or group of suppliers. “Sa aming palagay, ito ay papabor lamang sa iisang indibidwal o grupo ng mga supplier ng kuryente which grossly violates several existing laws and guarantees in our Constitution,” Sangcopan said.
Sangcopan said allowing unsolicited proposals only breeds unfair competition since it gives DoE the power to automatically award projects to any company who matches the price set by the department without giving opportunity for other equally qualified and competent suppliers.
“Hindering open and just competition in the power industry consequently jeopardizes the welfare and rights of Filipino consumers for reliable, accessible, affordable, and sustainable supply of electricity. Consenting to this proposal, is like allowing consumers (like us) be subjected to further hardship, helplessness, and abuse,” Sangcopan said.
In a press briefing by Kuryente.org in partnership with AMIN Party-list, the DoE’s Circular No. DC2018-02-0003, also known as “Adopting and Prescribing the Policy for the Competitive Selection Process in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive Market”, is a move that is “five steps backwards”.
“DoE should abandon this proposal as it moves to weaken competition in the energy sector. Implementing Unsolicited Proposal effectively brings us back to the regime of negotiated/direct procurement of power supply agreements, which proved problematic,” said Nic Satur Jr., national coordinator of Kuryente.org.
The said briefing echoed the same sentiments by other concerned consumer groups and civic organizations.
“Direct negotiation lacks transparency! Neither does it address the high cost of electricity nor the daily power interruptions as in the case of many electric cooperatives across the country. It will only leave consumers more in the dark and an added burden. Energy consumer welfare now is not just an economic rights issue but also a political or electoral one,” said Ricky Juab of Consumer Welfare Advocate.
For her part, Mel Salda, a work-at-home single parent and a consumer group advocate, said the pandemic has already pushed most consumers to work remotely thus, dramatically increasing the use of electricity consumption.
“DoE’s priority right now should be making the cost of electricity accessible and easing the burden of consumers instead of adding to it. Unsolicited proposal of the DoE is making me more anxious – am I just working to pay for high electric bill? Are we racing to become the most expensive electricity in Asia? If that is the case, should we also call for wage increase or household electricity subsidy?” said Salda.
Sangcopan also reminded consumers that a weak, unfair, and unhealthy competition process through the realization of unsolicited proposals will only result to higher electricity costs where consumers are the main victims.
“We do not understand where this circular issued by DoE is coming from especially in these times where everyone, business and families alike –are suffering. As consumers, we feel we are held hostage here dahil malinaw na ito ay dagdag na pahirap lamang sa atin. Sana ay patuloy tayong magtulungan at magkaisa na tutulan ang hakbanging ito, hindi lamang para sa ating mga sarili, kung hindi para na din sa ating mga anak at sa susunod pang henerasyon,” Sangcopan ended.
