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DoE outlines requirements for power distribution development plans

THE Department of Energy (DoE) has released the guidelines for members of the power industry preparing distribution development plans (DDP), according to a department circular published in BusinessWorld’s Thursday issue.

Distribution utilities (DUs) are required to submit their DDPs to the DoE, while electric cooperatives are required to turn in their plans to the National Electrification Administration. A DDP guides companies in planning for the power requirements of their respective franchise areas in the context of the area’s economic development.

In the circular, which was signed by Energy Secretary Alfonso G. Cusi on March 2, the DDP must contain: general information about the firm, energy and demand requirements for its supply mix, network and non-network assets, power supply contracts, a power supply procurement plan, electrification activities, and strategies to comply with renewable portfolio standards (RPS) requirements.

The RPS program requires DUs to source an agreed portion of their supply from eligible renewable energy facilities.

“The DU and other mandated entity must fill up the distribution development plan form… attached in this circular. The crafting of the DDP must take into account all applicable provisions prescribed in the Philippine Distribution Code,” according to the circular.

Along with the completed DDP form, firms must include their demand and energy level forecasts, capital expenditure program targets, details of power supply agreements, updates on capacity based on competitive selection processes, and updates on total electrification in their submissions.

The Energy department said the guidelines ensure that the planning of the DUs and other mandated entities are “responsive to developments in the power industry.”

The DoE, in its circular, said companies must submit electronic copies of their DDPs by Jan. 25 of each year. The DUs and other entities are also required to turn in electronic versions of their final annual 10-year DDPs to the DoE not later than March 15 of each year.

“Non-compliance by the DUs and other mandated entities with the provisions of this Circular serve as basis, among others, for the DoE’s review and recommendation for the renewal or revocation of the DU’s and other mandated entity’s franchise or privileges,” the energy department said.

The DoE added that it will ask the Energy Regulatory Commission to issue a show-cause order to firms that do not comply with the requirements.

The circular will take effect 15 days upon its publication in at least two newspapers of general circulation. — Angelica Y. Yang

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