ERC issues rules on transition to open access

MANILA, Philippines - The Energy Regulatory Commission (ERC) has issued a resolution governing the transition to the so-called open access and retail competition regime in the power sector.

In its resolution, the ERC said contestable customers (CC) or those with a monthly electricity demand of at least one megawatt have can stay with their current electricity supplier until Dec. 25, 2013 or until they are able to find a retail electricity supplier (RES).

The ERC said there are several CCs that have not found an electricity supplier capable of serving their respective power requirements.

The different CCs have asked the ERC that they be allowed to stay with their respective distribution utilities (DU) currently serving their electricity requirements until Dec. 25, 2013.

At the same time, the ERC said that in case a CC decides to terminate its contract with its distribution utility, it should inform the DU 60 days prior to the effectivity of its new contract with a retail electricity supplier.

“Moreover, once a CC has decided to enter into a contract with a retail electricity supplier, it will no longer be allowed to return to its old DU’s regulated service,” the ERC said in its rules.

ERC chairperson Zenaida Cruz-Ducut said the ERC issues to resolution with the best interest of the contestable customers in mind.

The CCs’ business viabilities are protected through the easing of the timelines provided in the Transitory Rules by taking cognizance of the inability of the Retail Electricity Supplier (RES) to make fixed offers and serve the power requirements of the CCs,” Ducut said.

Under the first phase of open access regime, CCs or electricity end-users with a monthly average peak demand of at least one megawatt for the preceding 12 months are entitled to choose their electricity supplier as determined by the ERC in accordance with the Electric Power Industry Reform Act (EPIRA) or Republic Act 9136.

The Department of Energy (DOE) and the ERC together with the Philippine Electricity Market Corp. (PEMC), administrator of the Wholesale Electricity Spot Market (WESM) launched on Monday the commercial operations and integration of the so-called Retail Competition and Open Access (RCOA) into the WESM or the country’s electricity trading floor.

However so far, only 239 contestable customers out of 909 applicants have received approval to participate in the new regime.