Damning DOE’s directive
There is this group of electric cooperatives in the country called the Philippine Rural Electric Cooperatives Association, Inc. or PHILRECA. It is composed of 121 electric cooperatives all over the country and the association is questioning the Department of Energy’s (DOE) new procurement rules specifically in the procurement and awarding of various energy p r o j ect s.
DOE’s Department Circular No. DC2018-02-0003 after becoming effective since February 2018, has been called as arbitrary, unfair and has disruptive effects by the PHILRECA among other power sector stakeholders particularly its new procurement rules. The same essentially limit the mode of obtaining projects solely through competitive bidding while setting aside the “Swiss challenge” mode.
Under the said mode, the offer of the original proponent is subject to a challenge by another supplier. If there is a challenger with a lower bid or offer, the original proponent has the option to match the lowest bid.
It can be recalled that even President Rodrigo Duterte himself advocates on the use of the Swiss challenge mode in government projects as a way of avoiding corruption. The DOE is now removing the said mode of obtaining projects. He has expressed preference for the said system.
According to PHILRECA President Presley De Jesus, they were questioning the new DOE guidelines because it has provisions inconsistent with established procurement practices in the power sector. He added that electric cooperatives with undergoing compliance procedures should not be affected and prejudiced by the new procurement policy of the DOE.
De Jesus likewise expressed that they want clarity and consistency in the power sector procurement policy as they manifested their disagreement with the DOE that they would start from scratch in their procurement for projects since it is illogical and shall waste time.
PHILRECA is just the latest among the power sector stakeholders to raise serious con- cerns on the DOE’s new procurement policies. The old policies by the way have been approved and significantly improved through time.
To have new policies implemented, we see no need for such since we need not introduce repairs to what has not been damaged. There is no need to fix when there is nothing to fix in short.
Such policies are quite important since it affects the services of electric cooperatives in the country vis-à-vis with the millions of electricity consumers. The latter of course should be prioritized in terms of their welfare provided by electric power distributors.
In the energy industry, stakeholders should always focus in the provision of quality services to the people they serve. Matters such as reliable, sufficient and stable supply of electric power, low rates among others should always be considered. Electric cooperatives in the first place are owned by the people, thus the latter deserve what is good for them.
It’s good that we have the PHILRECA that looks after the benefit, welfare and the rights of electricity consumers in the country.
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