DOE Opens 69 QTP Areas to Private Sector Investments

TAGUIG CITY-- The Department of Energy (DOE) has declared a total of 69 places in Negros Occidental and Palawan as remote, underserved, and unserved areas, open for the private sector to provide electricity services as a Qualified Third Party (QTP).  

These areas, collectively known as QTP Service Areas, were published at the DOE portal on Monday (15 March) under PN2021-03-001 signed by Secretary Alfonso G. Cusi. Said publication was in compliance with DOE Circular No. DC2019-11-0015 “Prescribing Revised Guidelines for QTP” issued on 22 November 2019.

Per PN2021-03-001, six of the service areas are in the franchise areas of Negros Occidental Electric Cooperative (NORECO), and 63 are under Palawan Electric Cooperative, Inc. (PALECO).

“The DOE is determined to fast track its total electrification program for the country. We will make electricity available to all unserved and underserved households in the country, and the QTP program will help us realize our goal,” Secretary Cusi said. 

The QTP is an alternative electric service provider duly qualified and authorized by the Energy Regulatory Commission (ERC) to serve QTP Service Areas, pursuant to Section 59 of the Electric Power Industry Reform Act of 2001 and Rule 14 of its Implementing Rules and Regulations (IRR), for the purpose of encouraging private sector participation in rural/missionary electrification, while accelerating the total electrification of the country. 

Participation as a QTP shall be open to any party, including but not limited to private firms, local government units, cooperatives, non-government organizations, generation companies or their subsidiaries, or subsidiaries of Distribution Utilities (DU) which demonstrated the capability and willingness to comply with relevant technical, financial, and other requirements through a Competitive Bidding process. 

The concerned DU shall conduct the Competitive Bidding for QTP within 20 working days from the date of posting of the QTP Service Areas. Should the DUs fail to comply, the National Power Corporation (NPC) shall conduct the Competitive Bidding.

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