The Department of Energy (DOE) has issued guidelines for the performance assessment and audit of all power generation, transmission and distribution systems and facilities.
The set of guidelines, signed by Energy Secretary Alfonso G. Cusi in December last year, was published on Tuesday.
“These guidelines are intended to direct the electric-power industry participants, the auditors and auditees, to effectively implement the Performance Assessment and Audit activities,” the DOE said.
Performance audit involves the complete inspection to determine whether the systems and facilities in the operation of the power generation, transmission and distribution sectors are in accordance with the existing standards.
Performance assessment involves the holistic evaluation to determine whether the industry participants, their systems, operations and facilities adhere to the principle of efficiency, effectiveness, appropriateness and safety.
“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,” the DOE said.
The audit on power-generation system and facilities will be conducted by the Energy Regulatory Commission (ERC), through the Grid Management Committee (GMC) and Distribution Management Committee (DMC).
The Philippine Electricity Market Corp. (PEMC), through its Enforcement and Compliance Office and Market Surveillance Committee, will also be involved in the audit to check the compliance of generators with the Wholesale Electricity Spot Market rules.
The audit on transmission system and facilities will also be conducted by the GMC and PEMC. The National Transmission Corp. and the Power Sector Assets Liabilities and Management Corp. will audit the performance of the transmission network provider and system operator.
The GMC and DMC, once again, will be involved in the audit of distribution systems and facilities. They will be assisted by the National Electrification Administration with respect to the electric cooperatives’ overall performance.
The audit reports must be submitted to the DOE and ERC within seven days after the completion of the audit report. The DOE will then evaluate all audit. It may tap a third-party entity to assist the agency in the evaluation. The DOE, with the Performance Assessment and Audit Task Forces, will prepare a recommendation to address assessment findings in order to attain the objective of the energy-related laws and may develop policies.
Energy contracting
The DOE has also adopted a simpler and faster method for awarding petroleum service contracts (PSCs). Under Department Circular 2017-12-0017, the DOE adopted the Philippine Conventional Energy Contracting Program of PSCs via nomination through publication to facilitate the acceptance of applications for PSCs from interested applicants at any given time.
This method, said the DOE, is deemed to be more responsive if the development of the country’s petroleum resources is to be intensified.
Based on the circular, the selection process in the awarding of PSCs to qualified applicants shall be conducted either through applicants’ nomination and publication of areas of interest, or the DOE itself may publish identified petroleum areas that are not covered by any application for nomination.
The applicant maybe a local or foreign firm. In case two or more applicants are interested in the same area, the highest-ranked applicant who meets the legal, technical and financial requirements shall be selected.
The Philippine National Oil Co.(PNOC) or the PNOC-Exploration Corp. (PNOC-EC) will have the option to participate in the PSCs.
“An option shall be reserved for PNOC, or PNOC-EC for a maximum of 10 percent participating interest in a proposed PSC involving one or more Filipino participant or a maximum of 15 percent participating interest in a proposed PSC involving no Filipino participant,” the circular read.
Last year DOE Assistant Director Ismael Ocampo said the areas that could be offered under the new scheme include parts of the West Philippine Sea, Sulu Sea and areas around Palawan province. The DOE is hoping that another Malampaya will be discovered.