DOE explores options on RCOA

CEBU CITY, Philippines — The Department of Energy (DOE) is exploring ways on how to move forward with the resumption of the retail competition and open access (RCOA) scheme, which was halted by the Supreme Court last February.

During the E-Power Mo Energy Investment Forum and Stakeholders Conference here, DOE Undersecretary Felix William Fuentebella said the agency is looking at two options to resume the implementation of the shift to an open retail market.

“One option is to petition the court for immediate resolution of pending cases. Number two is to explore how to present two draft circulars (on RCOA),” he said.

The draft circulars, which covers the timelines for contestable customers and requirements for retail electricity suppliers, was presented during the forum to get stakeholders’ comments.

The goal of the draft circulars is to lower the threshold by making it voluntary instead of mandatory, which was the main issue in issuing the temporary restraining order (TRO) by the high court, DOE Secretary Alfonso Cusi said in another interview.

But to ensure nothing will be violated, the DOE is seeking legal advice from the office of the Solicitor General (OSG).

“We asked for a legal opinion from the OSG on how do we proceed. Are we going to be in contempt if we issue a circular lowering the threshold but making it voluntary,” Cusi said.

Last February, the high court stopped the DOE and Energy Regulatory Commission (ERC) to implement the mandatory migration of large power consumers to RCOA.

The TRO was sought by the Philippine Chamber of Commerce and Industry, San Beda College Alabang Inc., Ateneo de Manila University and Riverbanks Development Corp., which said the new rules supposedly limits the accredited suppliers for big power consumers which must be given a choice whether to stay with their current distribution utility suppliers.

The mandatory migration to RCOA of end-users with at least one megawatt (MW) usage was scheduled last Feb. 26. Meanwhile, customers with at least 750 kilowatts (kw) in demand was supposed to migrate last June 26.

It has been 16 years since the Electric Power Industry Reform Act was enacted, and RCOA is one of the policy mechanisms that have yet to be implemented. RCOA aims to institutionalize competition in the supply of electricity, allowing the electricity end-users to choose their suppliers based on low price and other factors.

Earlier, Sen. Sherwin Gatchalian said the Joint Congressional Power Commission (JCPC) is forming a legal opinion to also push for the RCOA since EPIRA’s direction is to empower consumers to choose and the TRO is preventing this from happening.

Under EPIRA, JCPC will be the oversight committee for the law’s proper implementation. It shall be composed of 14 members with the heads of the energy committees of the Senate and the House of Representatives and six additional members from each chamber designated by the Senate President and the House Speaker.