ERC sets rules on consumer choice programs

MANILA, Philippines —  The Energy Regulatory Commission (ERC), the power regulator, has issued unified rules on customer choice programs to empower consumers with the freedom to select their preferred electricity suppliers.

These programs include the retail competition and open access (RCOA) and retail aggregation programs (RAP) under the Electric Power Industry Reform Act (EPIRA), as well as the green energy option program and distributed energy resources.

Under the Omnibus rules, a Magna Carta for retail customers was created to ensure key rights, such as choosing suppliers, access to transparent billing and protection against early contract terminations.

ERC chairperson and CEO Monalisa Dimalanta said the consolidated guidelines affirmed their commitment to advancing the objectives of RCOA, which she considers the “holy grail of EPIRA.”

“The implementation of RCOA has transformed the Philippine energy sector by empowering consumers with choices and driving investment and competition in the electricity market,” she claimed.

Under RCOA’s prevailing threshold, consumers with an average monthly peak demand of at least 500 kW for the preceding 12 months are eligible to contract with any authorized electricity supplier on a voluntary basis.

With the issuance of the new rules, Dimalanta is hoping to strengthen education campaigns to help consumers effectively exercise their power to select suppliers that “best meet their unique needs.”

The guidelines also expand the RAP implementation, allowing two or more end-users within a franchise area to aggregate their demand and be treated as a single contestable customer.

Furthermore, licensing requirements for retail electricity suppliers (RES) were also improved to ensure their financial stability and competitive edge.

The rules now mandate an RES to have a tangible net worth of at least P15 million.

“The new set of rules likewise introduces a mechanism for determining the standing of RES, including criteria and parameters for assessing a retail supplier’s compliance and performance metrics,” the ERC said.

Customer feedback is now included as a key factor in evaluating the performance of retail suppliers during license applications, the regulator also said.