ERC asks SC to lift TRO on RCOA scheme

MANILA, Philippines - The Energy Regulatory Commission is asking the Supreme Court to lift the temporary restraining order on the mandatory shift to the Retail Competition and Open Access (RCOA) scheme, commissioners said yesterday.

ERC commissioner Gloria Yap-Taruc said the power regulator has filed a motion to reiterate its plea for the TRO to be lifted by the SC.

 “They’re the ones who issued the TRO. It’s impacting on the industry and our hands are tied. We have to seek guidance from them on how to move forward,” ERC OIC Alfredo Non said after a Senate panel deliberated on the agency’s budget yesterday.

In its motion, the ERC also sought clarification if it can lower the threshold to 750 kilowatts (kw) on a voluntary basis and if it can issue retail electricity supplier (RES) licenses.

The power regulator said there are a number of pending RES applications and it cannot decide on approving those filings.

Last February, the SC issued a TRO rules on the mandatory migration of large power consumers to RCOA.

End-users with at least one megawatt (MW) usage was scheduled to shift to RCOA last February while users with at least 750-kw demand was supposed to migrate in June.

The TRO was sought by the Philippine Chamber of Commerce and Industry, San Beda College Alabang Inc., Ateneo de Manila University and Riverbanks Development Corp., which said the new rules supposedly limits the accredited suppliers for big power consumers which must be given a choice whether to stay with their current distribution utility suppliers.

It has been 16 years since EPIRA was enacted, and RCOA is one of the provisions that have yet to be implemented. It aims to institutionalize competition in the supply of electricity, allowing the electricity end-users to choose their suppliers based on low price and other factors.

Earlier, the Department of Energy pushed for a mandatory shift to RCOA when it filed for a motion for reconsideration with the SC.

The agency stressed that a mandatory transition would actually develop the market which would bring in more competition and allow more freedom of choice for consumers.