• DOE sets regular power industry audit
The Department of Energy (DOE) will soon start a regular audit and assessment on the overall performance of the power industry.
DOE Secretary Alfonso Cusi has signed a circular establishing guidelines for the perfor(DMC) mance assessment and audit of all power generation, transmission and distribution systems and facilities.
The agency said it sees the need to adopt policies for the effective enforcement and monitoring of various compliance requirements such as standards, anti-competitive behavior metrics and reportorial requirements.
“The performance assessment and audit shall serve as the DOE’s tool for the assessment of the overall performance of the electric power industry, thereby paving the way for a holistic and comprehensive development of policy that is instrumental in supporting the economic growth of the country,” it said.
The DOE defines performance audit as the complete and careful inspection and examination to determine whether systems and facilities in the operation of the power generation, transmission and distribution sectors are in accordance with standards.
Meanwhile, performance assessment involves the holistic evaluation to determine whether industry participants, their systems, operations and facilities adhere to the principles of efficiency, effectiveness, appropriateness and safety.
The DOE said this policy would ensure the power industry’s compliance with current standards. It will also be used in the development of the Philippine Energy Plan and the update of existing processes, policies, regulations and standards.
Under the circular, the performance audit on the power generating sector will be conducted by the Grid Management Committee (GMC), Distribution Management Committee and the Philippine Electricity Market Corp. (PEMC), through its Enforcement and Compliance Office and Market Surveillance Committee (MSC).
The audit of transmission system and facilities will also be done by the GMC, PEMC’s MSC, as well as the National Transmission Corp. (TransCo) and Power Sector Assets Liabilities and Management Corp. (PSALM).
The DMC, GMC, PEMC and the National Electrification Administration (NEA) will do the audit on the distribution sector.
The circular said audit reports must be submitted to the DOE and ERC within seven days after the completion of the audit report.
Meanwhile, the DOE, through the Performance Assessment and Audit Task Force will, conduct the annual performance assessment on the power industry.
Apart from annual assessments, the DOE will also conduct an incidental/special audit on the industry when it deems necessary, such as when there are significant incidents causing power disruption, during emergency situations arising from natural or man-made calamities and when directed by the Energy chief.
At the start of his term in 2016, Energy Secretary Alfonso Cusi issued a special order to the agency’s power bureau to undertake a technical audit on power plants and the distribution sector to have a better picture of the power industry.
The special audit will try to validate the figures submitted by the generating companies and the distribution utilities which will be used in the delivery of quality, reliable, secure and affordable supply of energy.