ERC okays interim open access for big users

The Energy Regulatory Commission (ERC) has approved the implementation of the power supply option program (PSOP) or the interim open access (IOA) that will allow big power users to choose where to source their requirements.

The ERC said it allowed the Philippine Independent Power Producers Association (PIPPA), Manila Electric Co. (Meralco), Visayan Electric Co. (VECO), Clark Electric Distribution Crop., Davao Light & Power Co. (DLPC), Cagayan Electric Power and Light Co. (Cepalco), San Fernando Electric Light & Power Co., (SFELAPCO), and Panay Electric Co. Inc. (PECO) to carry out the PSOP in the Luzon and Visayas grids.

The ERC, however, said the PSOP will initially be implemented in the Luzon grid.

The commission also imposed some conditionalities before the program is carried out.

The first condition the implementation of the PSOP to commence from the transfer of the operation of the Calaca power plant to its new owner, Suez Energy.

The Power Sector Assets and Liabilities Management Corp. (PSALM) was supposed to close the deal with Suez Energy last month. The Calaca plant was bid out on Oct. 16, 2007, with the consortium of Calaca Holdco Inc. (CHI) emerging as the highest bidder with a bid of $786.53 million. Under PSALM bidding rules, the winning bidder should come up with a 40 percent upfront payment 270 days after the contract of effectivity is served to the buyer.

The PSOP, according to ERC, shall cease to be operational upon commencement of actual open access and retail competition.

Within 30 days, all parties involved will have to furnish the ERC data indicating the total contracted capacity as certified by the counter-party and the total uncontracted capacity each plant.

In approving the PSOP, the ERC said the new program will complement the existing programs and supply schemes implemented in the industry such as one-day power sales, customer choice program and direct connection with the ERC.

 “The commission is of the opinion that the terms of the instant petition for IOA are quire similar to the aforementioned schemes/programs which have already been tried and tested in the market. The commission finds cogent need to incorporate improvements or positive changes that would resultantly modify the model into one that is better attuned to the policies and goals embodied in the EPIRA,” the ERC order said.

ERC said the PSOP customers shall consist of end-users with a monthly average peak demand of at least one megawatt for the past 12 months prior to the implementation of the program.

The threshold level of 1 MW are retained throughout the duration of the implementation of PSOP. — Donnabelle Gatdula