ERC expects open access to start next year

MANILA, Philippines - The Energy Regulatory Commission (ERC), the country’s power sector watchdog, expects the start of the open access scheme in the first half of 2010.

ERC executive director Francis Saturnino Juan said they are just waiting for the turnover of the Calaca power plant to signal the start of interim open access (IOA), wherein consumers with at least one megawatt (MW) of power requirement will have the option to choose where to buy their power requirement.

“Based on the interim open access terms of reference, once the plant is turned over then open access will already start,” he said.

Under the IOA rules, eligible customers with bulk energy requirements like large industries may choose the power generating companies that will supply them.

In July this year, DMCI Power Corp. of the Consunjis acquired the Calaca plant for $361.71 million.

DMCI president Nestor Dadivas earlier said they are optimistic they could take over the 600-MW coal-fired power plant in Batangas on March 2010.

It was learned that DMCI is now coordinating closely with the government’s privatization arm, the Power Sector Assets and Liabilities Management Corp. (PSALM) for the smooth transfer of the assets.

According to Juan, the IOA would be voluntary on the part of distribution utilities, customers and generating companies until the full open access scheme kicks off in the power sector.

Under the Electric Power Industry Reform Act of 2001 (EPIRA), actual open access would commence once PSALM completes the law’s last remaining conditions -the privatization of 70 percent of National Power Corp.’s generating and contracted capacities in Luzon and the Visayas.

The privatization threshold for Napocor’s plants has already been breached while the level of its sold contracted capacities is now around 34 percent.

The ERC official noted that they would also take into consideration the privatization of 70 percent of the supply contracts of Napocor.

But Juan said they have no idea when PSALM will be able to reach the 70 percent privatization level of independent power producers (IPPs) contracts.