Philippine Energy Policy Wiki

DC2023-06-0021 (Mandatory CSP Policy)

Status
operative
Confidence
high
Effective date
2023-07
Parent law
ra-9136

Document: Department Circular No. DC2023-06-0021 Title: Prescribing the Policy for the Mandatory Conduct of the Competitive Selection Process by the Distribution Utilities for the Procurement of Power Supply for Their Captive Market Issued: June 30, 2023 Issuing authority: DOE Secretary Raphael P.M. Lotilla Pages: 8 (image-based PDF; OCR via tesseract) Repeals (conditional): DC2015-06-0008, DC2018-02-0003, DC2021-09-0030, DC2022-06-0027

What This Document Does

Consolidates all prior CSP circulars into a single policy framework. The key structural shift: the DOE retains the Certificate of Conformity function (pre-bid alignment check), while ERC becomes the primary implementing guidelines issuer for the CSP conduct and PSA evaluation.

Key Provisions

Section 1 — Governing Principles. Transparent/competitive/timely bidding; CSP must commence ≥2 years before PSA expiry or projected demand increase; ERC to assess least-cost compliance; accountability; greenfield encouragement; public interest protection.

Section 2 — CSP Exemptions. Six categories not subject to mandatory CSP:

  1. NPC supply in off-grid areas (before NPP entry or in emergencies)
  2. PSALM bilateral contracts from undisposed generating assets and IPP contracts
  3. DU opt-in under the Green Energy Auction Program
  4. Embedded RE generators ≤10 MW contracted capacity per DU (host DU only; sales outside franchise area not exempted)
  5. Negotiated Emergency Power Supply Agreements (EPSAs) — filed with ERC within 30 days of force majeure; max 1 year; no subsidy
  6. Off-grid NPPs serving areas <1 MW demand with 24-hour service

Section 4 — CSP Mechanics. DU uploads current PSPP to DOE CSP e-Portal by June 30 annually. DOE-EPIMB issues Certificate of Conformity (CoC) within 3 working days of complete documents; CoC is valid for 45 days. DU publishes ITB only after CoC is issued. All bid documents, bulletins, and results posted on DOE CSP e-Portal.

Section 5 — NEA Responsibility for ECs. NEA issues CSP guidelines for ECs within 30 days of ERC guidelines. ECs may request NEA assistance. NEA intervention clause: if an EC cannot complete CSP 1 year before its PSPP-scheduled date, NEA takes over and may mobilize its own staff plus staff from other ECs, at no cost to the EC. EC must submit CSP process report to NEA before Board Resolution for PSA signing; no PSA may be filed with ERC without NEA-approved Board Resolution.

Section 6 — ERC Support. ERC to issue CSP implementing guidelines within 45 days of effectivity; issue EPSA guidelines; prescribe PSA template with minimum requirements; review all PSAs for least-cost compliance; impose fines for non-compliance.

Section 7 — Transitory Provisions. DUs with ongoing CSP without a COP as of ERC guidelines effectivity → follow this Circular. DUs with COP issued before effectivity → follow prior rules (DC2018-02-0003 as amended). All existing COP and NEA Notices to Proceed: valid for 45 days from issuance date.

Section 8 — Conditional Repealing Clause. DC2015-06-0008, DC2018-02-0003, DC2021-09-0030, DC2022-06-0027 are repealed upon the effectivity of the ERC guidelines — not upon effectivity of this Circular. Ongoing CSPs are not disrupted mid-process.

Policy Significance

The conditional repealing clause is important: prior CSP rules remain operative until the ERC issues implementing guidelines, preventing a regulatory gap. The NEA takeover provision strengthens EC compliance by providing a backstop — ECs with limited capacity can no longer delay CSP indefinitely without NEA stepping in.

Pages Expanded

Full text: Cleaned copy