ERC agrees to defer open access

MANILA, Philippimes - The Energy Regulatory Commission (ERC) has acceded to the request of the power industry stakeholders to defer the implementation of open access and retail competition.

ERC executive director Francis Saturnino Juan said the commission found the request of the stakeholders for deferment valid as the industry would need additional time to put up necessary infrastructure for the schemes.

Open access and retail competition will allow large power users, with an average monthly peak demand of one megawatt, the right to choose their own electricity suppliers. The entry of more competition in the retail electricity sector is expected to bring down power costs to large users.

“ERC resolved to defer implementation of open access and retail competition which was earlier scheduled to commence on Dec. 26, 2011. A new timeline will be set after the ERC receives the recommendations of the steering committee created by the Energy Department,” Juan said.

“The infrastructure has not been put in place, before we are able to do that we have issues to be resolved, between now and Dec. 26, we’ll not able to finish these, so the commission decided (to defer) so that stakeholders are guided accordingly,” he said.

He said the commission will come out a definite timeline as to when open access will commence.

“Maybe next year but we will await for the DOE steering committee to set the timeline,” he said.

Earlier, Manila Electric Co., Philippine Rural Electric Cooperatives Association, Inc. and the Private Electric Power Operators Association, Inc. in a joint letter to the ERC, have asked to defer the implementation of open access until certain concerns are resolved.

The power industry stakeholders said preparation for the system and infrastructure for open access and retail competition will take beyond Dec. 26.

“Our concern stems from the fact that the remaining time between now and (Dec. 26) will be grossly inadequate for the completion of both the policy framework as well as the establishment of the necessary systems,” the power groups said.

They said there is a need to step up the accounting, billing and settlement of transactions for open access, which could take 12 to 15 months to put up.

On the other hand, Energy Secretary Jose Rene Almendras said he is amendable to implement open access and retail competition next year provided that there is adequate power supply in the grid.