RCOA scheme under review

MANILA, Philippines - The Department of Energy (DOE) is mulling to give large power end-users more leeway under the retail competition and open access (RCOA) scheme by making it optional for those with at least one megawatt (MW) in monthly demand to migrate to the open market scheme.

The agency is reviewing the mandatory provision under RCOA rules to be able to accommodate adjustments in requiring large power end-users to comply, DOE Undersecretary Felix William Fuentebella said in an interview.

This follows a series of consultations with industry stakeholders, he said.

“The DOE secretary is open in making it not mandatory, or optional, to strengthen more the choice for the customers. That’s part of coordination with the Energy Regulatory Commission (ERC),” Fuentebella said.

Under the RCOA regime, end-users who are part of the contestable market, or contestable customers (CCs), are given the choice to choose their supplier of electricity to foster competition in the generation and supply sector.

Last November, the DOE and ERC decided to extend the deadline for one-MW end-users to comply with RCOA rules of securing contracts with retail electricity suppliers (RES) by Feb. 26.

In the original timeline, these end-users are supposed to have retail supply contracts (RSC) by Nov. 26, 2016.

Fuentebella said the deferred schedule is still on and the DOE would have to speed up the RCOA policy review to make it mandatory or not.

 “The February schedule will push through but whether (we will make it) mandatory or not, that’s what we have to look at,” he said.

Meanwhile, mandatory contestability for CCs with 750 kilowatts to 999 kw average peak demand remains on June 26.

The DOE’s decision to study the mandatory provision of RCOA is a welcome development for end-users, particularly for those that find it hard to secure RSCs, Manila Electric Co. (Meralco) SVP Alfredo Panlilio said.