Joint Statement resisting Unsolicited Proposal in the DOE

20 October 2021

JOINT STATEMENT

COMMIT TO UPHOLD ELECTRICITY CONSUMER WELFARE BY REJECTING THE UNSOLICITED PROPOSAL MECHANISM IN THE ENERGY SECTOR

We, the undersigned, representing consumers, business owners and development workers, collectively agree that the Competitive Selection Process (CSP) needs to be defended and strengthened in the procurement of electricity supply, as key in economic recovery and consumer welfare.

The DOE-proposed Unsolicited Proposal mechanism will only weaken the CSP and will render consumers at the mercy of greedy corporate interests, as it  will result in rising electricity rates, as the generation company which first submits the proposal, also referred to as the “proponent” can manipulate and dictate the market prices.

It is essential to highlight that several corporate entities own both generation and distribution utility companies with cross-ownership. DOE’s move could open possibilities to tailor-fit terms or enable pre-arranged victory for their subsidiary and affiliate companies under the “original proponent status”.

A 2014 World Bank study on Unsolicited Proposals[1] showed that projects initiated under unsolicited proposals faced many challenges, such as misuse of public resources, corruption, fraud, poor quality of resulting infrastructure, and lack of competition for markets resulting in natural monopolies.

Consequently, we ask the DOE, who is pressuring you to revise the competitive selection process?

The priority right now is to strengthen the energy sector to prevent brownouts and energy outages nationwide and do so at the least cost to consumers. Why are you stampeding in the wrong direction of low-level transparency that will weaken competition and promote corruption by allowing opportunities for fixing?

We implore Committee on Energy to take the side of electricity consumers and stop DOE’s efforts to curtail free competition in the country’s energy sector and we call on the House Committee on Energy to urgently:

  1. Hear House Resolution 1874 authored by Anak Mindanao Party-list Representative Amihilda Sangcopan, and
  2. Compel the DOE  to cease efforts to come out with any memorandum circular to amend the CSP and instead exhaustively discuss the need for an unsolicited proposal mechanism in the energy sector

We, consumers, have suffered long enough with economic and political scandals happening one after the other.

Our country’s electricity cost is still one of the highest in Asia, and we  believe that strengthening the competitive selection process instead of weakening it with the intended  unsolicited proposal mechanism will decrease the cost of electricity in the long term.

SIGNED:

Jaydar Medrozo                                                                     Brycan Dayao
Lead Campaigner                                                                   Host
POWER                                                                                    The Young Leader Podcast

Jerry Cocabo Yao                                                                   Rudyard Balmedilla
Entrepreneur, Academician                                                   Entrepreneur

Karlo Hain                                                                              Ismael Abaya
Entrepreneur                                                                          Founder/President, One Halal Association of the Philippines
Producer, Global Pinas TV

Joseph Orinion                                                                       Don Varr Aqui
LSDD                                                                                        President
JCI Makati                                                                               JCI Baguio

Mark Jacinto                                                                          Elmar Nabisa
Curator, OSYAF                                                                         Teacher

Russel Steve Sebio                                                                 Valred Olsim
Co-Founder                                                                              Founder
Elevate Benguet Movement                                                   La Trinidad Tourism Advocates

Ricky Juab
Consumer Welfare Advocate
Oroquieta City, Misamis Occidental


[1] https://ppp.worldbank.org/public-private-partnership/sites/ppp.worldbank.org/files/documents/UnsolicitedProposals_PPIAF.pdf

1 thought on “Joint Statement resisting Unsolicited Proposal in the DOE”

  1. In behalf of GPP Kalikasan Muna – Green Party of the Philippines, I would like to include our signature in the Manifesto and include this as part of my electoral agenda in my run for the Senate. We should always stand guard against unfair transactions in the government alongside pushing for alternative and renewable sources of energy.

    Please add David D’Angelo, President – Green Party of the Philippines to the Manifesto. We fully support this call.

    Let me know in what ways I can still help.

    Thanks and best regards.

    Respectfully yours,

    David D’Angelo
    National President
    Green Party of the Philippines
    http://www.greenparty.ph

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