ERC bares list of large customers who may choose their own power suppliers

By Ted P. Torres (The Philippine Star) Updated August 30, 2011 12:00 AM 


MANILA, Philippines - The Energy Regulatory Commission (ERC) has released a list of “contestable customers” or large electricity consumers who may choose the power plants that would supply their power requirements starting next year.


Around 334 companies in Luzon and Visayas were certified to have met a monthly peak demand of 1.5 megawatts (MW) and up.


On the other hand, 180 establishments were found to have monthly peak demand between one megawatt and 1.49 MW.


The so-called contestable customers are qualified to participate in the open access in the power sector, or customers that can select their power source and probably get better deals since it will be directly dealing with power producers.


Among the companies given the nod by the regulator are water utilities, property developers, financial institutions, local government units, industrial manufacturers, and food and beverage companies, among others.


Open access will allow consumers to choose their power suppliers in contrast to the current practice of distribution utilities sourcing electricity on behalf of their customers. It should spur competition and efficiency in the power generation sector, which was once dominated by the government.


The implementation of the scheme was anchored on the completion of the last remaining mandate under the Electric Power Industry Reform Act of 2001 (EPIRA), that of the privatization of at least 70 percent of government’s power plants and contracted output with independent power producers.


In a recent decision, the ERC confirmed that the government has met the privatization threshold thus scheduled the start of open access on Dec. 26, 2011.


The EPIRA likewise states that the introduction of open access will be gradual, starting first with end-users with a 12-month average demand of at least one-megawatt. The coverage will then be expanded over the succeeding years until it reaches the household level.


Competition will not only be among power producers but also power distributors. It will also encourage the entry of more players in the energy sector.