MANILA, Philippines - The Energy Regulatory Commission (ERC) has accredited more than 900 companies that can benefit from the implementation of retail competition and open access (RCOA).
In a public notice, the power sector regulator said 909 firms in Luzon and Visayas are now allowed to choose their electricity service providers, up from 828 firms considered as “contestable customers” late in September.
Under the RCOA, customers can freely choose their electricity service provider.
This means that electricity end-users with an average monthly peak demand of one megawatt or the “contestable customers” can choose from whom to procure their electricity service.
Through RCOA, retail electricity suppliers like Manila Electric Co. can tailor their supply packages to provide customers with the best value based on their power consumption profile and other preferences.
ERC said the 818 qualified firms in Luzon include diversified conglomerate San Miguel Corp., International Container Terminal Services Inc., Manila Water Co. Inc., Government Service Insurance System, Ayala Corp., Philippine Long Distance Telephone Co. and Philippine Airlines Inc.
In the Visayas, 91 firms can choose their power providers. The list includes SM Prime Holdings, Inc., Robinsons Land Corp., Coca-Cola Bottlers Philippines Inc. and Monde Nissin Corp.
The accredited firms cover energy, steel manufacturing, hospitals, ports, malls, car production and the property sector.
The ERC earlier said rules in the implementation of the RCOA will be released late this year to allow the market to adjust.
“Based on its consultations with other key players in the establishment of the retail segment of the competitive electricity market, the ERC deems it necessary to provide for a six-month transition period starting on Dec. 26,” said ERC executive director Francis Saturnino Juan.
The Department of Energy (DOE) previously targeted the full implementation of already delayed RCOA in December. In November last year, the ERC approved the deferment of RCOA due to the lack of necessary infrastructure and policies. It was supposed to kick off on Dec. 26, 2011.
The Philippine Electricity Market Corp., which was designated as the central registration body in the RCOA, expects more than 800 participants in the RCOA. Participants are composed of distribution utilities, retail electricity suppliers and regulators like the DOE and ERC.
As envisioned in the Electric Power Industry Reform Act of 2001, RCOA will introduce competition in the retail supply segment of the electric power industry.