ERC issues contracts for retail competition and open access

MANILA, Philippines - The Energy Regulatory Commission (ERC) has issued three contracts for the implementation of retail competition and open access (RCOA), a new scheme in the power sector.

The three contracts are the supplier-of-last resort (SOLR) contract, connection agreement and the distribution wheeling service agreement (DWSA).

ERC chairperson Zenaida Cruz-Ducut said the contracts are necessary to help ensure the smooth transition to the retail competition regime, which allows businesses to be able to decide for themselves which electricity provider is in the best position to supply their needs.

“The pro-forma agreements approved by the ERC for the use of all distribution utilities (DUs) will facilitate the smooth transition of the power industry to a retail competition and open access regime and help standardize the various terms and conditions applicable to the various services that the DUs shall be offering to the retail market participants,” Ducut said.

The SOLR contract is for contestable customers in case they fail to choose or find a willing retail electricity supplier or when their supplier is unable to service its contestable customers.

The connection agreement, meanwhile, is between a contestable customer and a distribution utility governing a DU’s provision of distribution connection services to a CC.

However, the ERC said this contract does not cover the agreement to supply electricity to be sourced from a generating company or an electricity supplier to a contestable customer.

The DWSA, the last of the three contracts, is the agreement between a retail electricity supplier and a distribution utility governing the latter’s provision of distribution wheeling services which pertains to the services for the conveyance of electricity through the distribution system that involves the use of the wires, poles, substations, and transformers to meet the demand of customers.