Power generators keep tab on open access scheme

MANILA, Philippines - Power generators are keeping a close watch on the open access regime, noting that there may be slight problems or concerns as part of the usual birth pains.

The Philippine Independent Power Producers Association (PIPPA) said it is still too early to say how the new regime would impact on both the consumers and the power suppliers.

“We don’t know yet because it’s our first billing month,” said PIPPA president Luis Miguel Aboitiz.

He said if there are no problems in billing, there may be no issue or concern with the implementation of the open access regime in the power sector.

“As long as billing and payment occur without problems, hopefully, there will be no issue,” Aboitiz said.

He said one issue that may arise is if the information to produce the bills come on time since it would be a new system, which could determine if the more than 200 suppliers would be able to issue their bills on time. The necessary information would come from the Philippine Electricity Market Corp. (PEMC) as the central registration body (CRB) of the RCOA, a regime mandated under the Electric Power Industry Reform Act of 2001.

Essentially, the open-access regime or the Retail Competition and Open Access (RCOA) allows businesses to be able to decide for themselves which provider is in the best position to supply its needs. These businesses are the contestable customers or those with electricity demand of at least one-megawatt.

So far, only 239 out of 909 applicants have received approvals to participate in the new regime.

Last month, the Department of Energy and the Energy Regulatory Commission (ERC), together with the PEMC, the administrator of the Wholesale Electricity Spot Market (WESM), launched the commercial operations and integration of the RCOA into the WESM or the country’s electricity trading floor.

The energy department has already issued a circular mandating the use of retail market manuals for the implementation of the new regime in the power sector.