MANILA, Philippines - Energy Secretary Jose Rene Almendras says he will recommend that the open access and retail competition (OARC) will start in the second half of 2012.
“Next year, beyond the second quarter, probably early second half of next year. It cannot come before June and it’s also not good to have that during that time of the year when your peak demand is rising, Almendras said.
As envisioned in the Electric Power Industry Reform Act (EPIRA) or Republic Act 9136, OARC will introduce competition in the retail supply segment of the electric power industry.
Under open access, contestable customers may now choose their electricity service provider.
This means that electricity end-users with an average monthly peak demand of one megawatt will now have a choice from whom to procure their electricity service.
Through OARC, retail electricity supplier (RES)’s can tailor their supply packages to provide customers with the best value based on their power consumption profile and other preferences.
According to the EPIRA, the introduction of OARC will be gradual, starting first with end-users with a 12-month average demand of at least one MW. The coverage shall be expanded after two years to customers with a 750 kW individual or aggregated demand.
After the Energy Regulatory Commission (ERC) approved the deferment of OARC which was supposed to kick off on Dec. 26, 2011, Almendras said the DOE will be coming up with a recommendation on the exact timetable for the implementation of the scheme anytime soon.
“The nice thing about this deferment is that we now have a firm date when we will implement OARC and we have a schedule of what needs to be done month-on-month leading to that firm date,” he said.
The energy chief assured industry stakeholders that the OARC will definitely push through.
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