ERC makes net-metering rules more pro-consumer

MANILA, Philippines — The Energy Regulatory Commission (ERC) has made the net-metering rules more friendly to ordinary electricity consumers.

ERC adopted changes to the Rules Enabling the Net-Metering Program for Renewable Energy through a resolution.

The net-metering program enables an ordinary electricity consumer to become a “prosumer.”

As a prosumer, the ordinary electricity consumer generates electricity for own consumption, as well as sell any excess generation to the distribution grid.

The rules for the net-metering program—a non-fiscal incentive mandated by the Renewable Energy Act of 2008—was promulgated as early as 2013. But during the implementation of the 2013 net-metering rules, significant concerns were raised by the stakeholders.

ERC chairperson and CEO Agnes Devanadera said the amended net-metering rules address the concerns raised by various stakeholders on the net-metering program implementation.

“It provides benefits that work for the welfare of the prosumers or qualified end-user, including a simplified permitting procedure and reduced installation soft costs for renewable energy facilities, among others. It likewise takes into account the impact of this program to non-net-metering customers,” she said.

The amended net-metering rules prescribe a maximum 20-day processing timeline for the distribution utilities (DUs) to complete the whole interconnection process from receipt of the letter of interest as long as all necessary permits and licenses are secured and completed.

The distribution impact study (DIS) fee and other related soft costs were also removed in order to encourage participation from end-users.

ERC has considered that the conduct of DIS is a regular activity of the DU to ensure the reliability and stability of the distribution system.  Hence, the ERC deemed it unnecessary to impose additional charges for its conduct.

The pricing methodology under the amended net-metering rules maintained the DUs’ blended generation cost excluding other generation adjustments, instead of the proposed retail rate.