ERC explores options on retail competition, open access

MANILA, Philippines — The Energy Regulatory Commission is working on a solution to fully implement retail competition and open access (RCOA), which was blocked by a temporary restraining order (TRO) issued by the Supreme Court.

ERC has come up with studies on how to move forward with the RCOA issue, ERC chairperson Agnes Devanadera said.

“The action of the ERC may be construed as something that would breach the line of the TRO so really, we have to be very careful but, of course, we have studied it and we are now ready for commission deliberations,” she said.

In February 2017, the High Court stopped the Department of Energy (DOE) and ERC from implementing the mandatory migration of large power consumers to RCOA.

Under the RCOA scheme, large electricity consumers in Luzon and Visayas with an average monthly peak demand of at least one megawatt (MW) have the option to seek their own power supplier.

The mandatory migration to RCOA of end-users with at least one-MW usage was scheduled on Feb. 26, 2017, while customers with at least 750 kilowatts (kw) in demand was supposed to migrate June 26.

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.  They argued the new rules supposedly limit the accredited suppliers for big power consumers.

Currently, there are 30 licensed retail electricity suppliers (RES) in the market, of which seven have already expired licenses.