Power industry stakeholders push DSM reforms

In a significant show of unity in support of demand-side management (DSM), 71 power industry stakeholders, including the National Power Corp. (Napocor), recently signed a landmark memorandum of agreement (MOA) that signified their support to the Efficient Lighting Initiative (ELI) proposal to amend the 1996 Regulatory Framework for DSM in the Philippines.

The newly enacted Electric Power Industry Reforms Act defines DSM as "measures undertaken by distribution utilities to encourage end-users in the proper management of their load to achieve efficiency in the utilization of fixed infrastructures in the system." The local power industry understands DSM to generally lower power bills of customers while allowing deferment of utility capital investment for system expansion and reducing greenhouse gas emissions.

The collaborative assembly was composed of private electric utilities, rural electric cooperatives, independent power producers, Napocor, Department of Energy, Department of Trade and Industry, National Electrification Administration, non-government organizations, environmentalists, consumer groups and the academe.

The signing of the landmark agreement was witnessed by the Energy Regulatory Commission (ERC), led by chairman Fe B. Barin and commissioner Carlos R. Alindada.

In an inspirational message, Barin thanked ELI for their assistance and strongly encouraged the utilities to work closely with ERC to implement DSM activities as part of the commission’s long-term strategy towards a more responsive power industry.

"We have reinvented DSM in the midst of a restructuring power industry with new rules that bolster consumer protection and utility viability," ELI country director Alexander Ablaza said. "We have unknowingly provided a global model for national DSM reforms. Union Fenosa is proud to promote and support DSM in the Asia-Pacific region."