500 seen to join power supply option program

MANILA, Philippines - Over 500 bulk electricity users of the Manila Electric Co. (Meralco) are expected to take part in the newly-approved Power Supply Option Program (PSOP), an Energy Regulatory Commission (ERC) official said.

ERC executive director Francic Saturnino Juan said they are set to sign more than 500 certifications to commercial and industrial bulk customers of distribution utilities (DUs) that could be part of the program.

“We will determine who will be eligible Meralco consumers. We will be issuing shortly a certification to these costumes with at least one megawatt in power consumption. There are already 500 (applications) which are ready for signature,” he said.

The list of eligible customers includes: Light Rail Transit Authority, Metro Rail Transit Authority, SM Prime Holdings, Robinsons Group and Coca-Cola Bottlers Philippines Inc.

Juan said the program is expected to kick off next month.

According to the ERC official, the program is voluntary and all other customers, even those outside the franchise area of Meralco, could avail of the program. But he said the program will be implemented in the Luzon area first.

“We will limit it to Luzon but those interested can apply and we can give them corresponding certificates,” he said.

To protect the customers, he said there are rules of pre-termination and exit clauses in the rules that were approved by the ERC recently.

The rules on PSOP will allow bulk power users an option where to choose their power requirement.

This new ruling will provide the regulatory framework to ensure the effective implementation of the PSOP and to provide an additional choice of supply to qualified customers. 

The PSOP is the latest addition to existing supply programs such as the Customer Choice Program of Meralco and the One Day Power Sale (ODPS) of the National Power Corp. (Napocor).

 The rules stemmed from the petition filed in 2008 for an Interim Open Access (IOA) program by several industry players seeking an early implementation of open access in the Luzon and Visayas grids towards the lowering of electricity rates. 

The ERC decision noted the tight supply situation in the Visayas grid, so the PSOP was made available only to Luzon grid customers.

The PSOP is designed to be initially implemented 90 days after the completion of either: the transfer of the operation of the Calaca Napocor generation assets to the private generation companies concerned or its equivalent in terms of capacity; or the privatization of a least 70 percent of the total capacity of generating assets of the Napocor in Luzon and Visayas, whichever comes first.

 “The PSOP is a voluntary scheme which gives some high load electricity consumers in Luzon the power to choose their own energy supplier. Such power to choose engenders competition among the eligible suppliers, which translates to more affordable rates and better service for the consumers,” ERC chairperson Zenaida G. Cruz-Ducut said.