PEZA, ERC sign agreement on supply of power in ecozones

The Energy Regulatory Commission (ERC) has entered into an agreement with the Philippine Economic Zone Authority (PEZA) to cooperate and coordinate in overseeing the operations of power generators and distribution utilities inside economic zones.

The memorandum of agreement (MOA) was signed by ERC chairman Rodolfo B. Albano, Jr. and PEZA director general Lilia B. de Lima and was witnessed by Trade Secretary Cesar V. Purisima and Energy Secretary Vincent S. Perez.

"This is a landmark event. The team-up of ERC and PEZA to ensure good quality and reliable uninterrupted power supply, in addition to maintaining competitive power prices, will boost the efforts to accelerate the country’s investment promotion and export development, creation of jobs and other economic opportunities," Albano said.

The MOA calls for PEZA’s registration with ERC of new power generation utilities exclusively catering to the power needs of PEZA locators, including the self-generation facilities of the said locators, as well as PEZA-registered distribution utilities. A certificate of compliance (COC) shall be issued to these entities as soon as all requirements of the energy regulatory body are met.

Existing power generation utilities, including entities with self-generation facilities are also required to apply for the issuance of a COC. Applicants that submitted complete requirements shall be notified by ERC of its action within thirty (30) working days from the date of application.

PEZA-registered power generation utilities and economic zone locators that own generation facilities must comply with the technical, financial and environmental requirements and standards of the Philippine Grid Code while distribution utilities must conform to the standards of the Philippine Distribution Code. Additional standards required by ERC and PEZA must also be met.

Prior to the implementation of open access and retail competition, the ERC in coordination with PEZA, shall undertake the fixing of generation power rates charged to its customers within the economic zone. Failure on the part of ERC to act on said applications within thirty (30) days from receipt of such applications would mean its automatic approval.

Disputes pertaining to power generation, distribution, and supply of electricity inside the economic zones shall be settled by ERC in coordination with PEZA.

"ERC hopes to sustain its vigorous efforts in balancing the interest of electricity providers and investors with that of the industrial consumers," Albano said.

The Electric Power Industry Reform Act provides that the distribution of electricity shall be subject to regulation by the ERC.