By
Lenie Lectura - February 23, 2017
The Department of
Energy on Thursday said it is duty-bound to implement the retail
competition and open access (RCOA), a key provision of Republic Act 9136, or
the Electric Power Industry Reform Act of 2001 (Epira), despite an order from
the Supreme Court (SC) not to enforce it.
“The provisions in the
Epira mandates the DOE to ensure the security, reliability and availability of
transparent and reasonably priced electricity in the country,” said Energy
Secretary Alfonso G. Cusi, adding that consumers should have the freedom of
choice as to which power provider they prefer to deal with. The High
Court announced on Tuesday that it issued a temporary restraining
order against the implementation of RCOA.
Under the said policy,
which will be enforced in phases, consumers are allowed to choose their
supplier of electricity to encourage competition in the generation and supply
sector.
The implementation of
mandatory migration for contestable customers (CCs) with average peak demand of
1 megawatt and above is on February 26. Mandatory contestability for
CCs with 750 kilowatt to 999-kW average peak demand will be effective
on June 26.
The rules also state
that the lowering of the threshold to cover an end-user with an average monthly
peak demand of at least 500 kW is set on June 26, 2018, subject to the
review of the performance of the retail market by the Energy Regulatory
Commission (ERC).
“One of the provisions
of the law is the implementation of the RCOA, which allows consumers to
directly contract power supply from licensed retail electricity suppliers
[RES],” Cusi clarified.
“The spirit of the RCOA
is giving the consumers the freedom of choice which would result in higher productivity
for them. And the power of choice can only be maximized when there is a level
playing field for all suppliers,” Cusi assured. “It is hoped that whatever the
decision by the Supreme Court, it will redound to the ultimate benefit of the
consumers, which is really the intent and the spirit of RCOA.” Cusi said.
According to the DOE,
21 percent, or 221 CCs, have yet to sign up.
Energy Undersecretary
Felix William Fuentebella said the DOE, ERC and the Philippine Electricity
Market Corp. (PEMC) will make public on Friday their unified position
on the matter.
“We will comply with
the Supreme Court mandate. We will talk with ERC and PEMC for a unified policy
for players to be guided,” Fuentebella said.
This unified policy is
meant to address the concerns of the industry players that are affected by the
SC decision. The DOE, Fuentebella added, is determined to explore
“all legal remedies”.
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