In a petition filed by Bayan Muna party-list, the SC was told that DOE’s new circular, Energy Department Circular 2018-02-003, effectively allowed the DUs, themselves, to appoint a third party to conduct CSPs on PSAs.
In the petition filed by Bayan Muna, through its chairman Neri Colmenares and Rep. Carlos Zarate, the SC was told that Circular 2018-02-0003 violates policies and provisions intended to protect consumers under the Electric Power Industry Reform Act of 2001 and the Constitution. “Whether or not the DUs will manipulate the bidding is of no moment. The fact is, the assailed department circular has expressly reversed provisions favoring the consumers and given the DUs the opportunity to manipulate and the option to control the bidding process which is detrimental to the consumers and violative of relevant laws,” they added.
The SC said that since the authority to distribute electricity is given through a legislative franchise, a regulated monopoly within their respective franchise areas, “competitors are legally barred within the franchise areas of distribution utilities.” “Competitive public bidding is essential since the power cost purchased by distribution utilities is entirely passed on to consumers, along with other operating expenses of distribution utilities. Competitive public bidding is the most efficient, transparent, and effective guarantee that there will be no price gouging by distribution utilities,” it stressed.
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