IEMOP switches 500-kW end-users for RCOA

March 27, 2021 02:30 AM
https://tribune.net.ph/index.php/2021/03/27/iemop-switches-500-kw-end-users-for-rcoa/

The Independent Electricity Market Operator of the Philippines (IEMOP) has completed last month the transfer of 13 newly eligible end-users to the competitive retail electricity market.

Previously set at 750 kilowatts (kW), the minimum average peak demand required to participate in retail competition was reduced by the Energy Regulatory Commission (ERC) to 5 00 kW starting 26 February 2021.

Under Retail Competition and Open Access (RCOA), end-users are provided the option to source their electricity from competitive Retail Electricity Suppliers.

Prior to RCOA, end-users can only source their electricity supply from the distribution utility to which they are connected.

With RCOA, end-users can choose from a number of suppliers in the market.

When an end-user switches to a supplier, the supplier coordinates with the distribution utility of the end-user for its supply of electricity.

As the Central Registration Body (CRB) for RCOA, IEMOP facilitates the switching of an end-user from its distribution utility to a supplier, or from one supplier to another.

To complete the transfer of an end-user, the supplier submits a request with the CRB who then ensures that all technical and commercial requirements are complied with.

As of 26 February, a total of 1,519 end-users have switched their supply from their respective distribution utilities to suppliers since the implementation of the RCOA in 2013.

During the same period, 583 transfers from one supplier to another have been completed.

IEMOP president and CEO Atty. Richard J. Nethercott emphasized that with the new options provided by RCOA, end-users are provided the ability to negotiate for supply that better accommodates their electricity demand requirements.

Primarily, RCOA enables end-users to reduce their electricity costs through competition.

Currently, there are 36 suppliers in the market that an eligible end-user can choose from.

In addition, end-users can customize their contracts to reflect their specific requirements. For example, an end-user that consumes more electricity during night-time may enter into a retail contract that has different price options for day and night hours.

Moreover, an end-user that has environmental objectives may opt to contract with a supplier that sources its supply from renewable energy power plants such as solar, wind and hydro.

Recently reduced to 500 kW, the threshold for eligibility to participate in retail competition will be further reduced to 100 kW, and eventually extended to the household-level.

However, the implementation of RCOA in household-level requires changes in how retail competition is operated to ensure the efficient transfer of end-users to their new suppliers and accurate accounting of their consumption for settlement.

Information on RCOA as well as the list of suppliers and their indicative parameters of their supply contracts may be viewed at the IEMOP and ERC public websites.

IEMOP has completed its initial studies for the development of the framework for household-level implementation and will continue to work with the Department of Energy and Energy Regulatory Commission to bring the benefits of RCOA to all Filipino consumers.

IEMOP is a non-stock, non-profit private corporation governed by a professional board of directors composed of individuals not affiliated with any of the electric companies that trade in the WESM.

The IEMOP carries out the mandate to pursue the WESM objective to have a transparent, fair, competitive, and reliable market for the trading of electricity throughout the Philippines.

As market operator, IEMOP is bound to strictly comply with the EPIRA, its Implementing Rules and Regulations, the WESM Rules and other related issuances of the Department of Energy.