ERC asks for comments on amendments to distribution services rules

BUSINESS MIRROR
SUNDAY, 11 SEPTEMBER 2011 20:46


THE Energy Regulatory Commission (ERC) said on Friday it is seeking comments on the proposed amendments to the distribution service and open access rules (DSOAR).


In a statement, ERC said the proposed amendments aim to clarify Sections 2.6 and 2.7 of the DSOAR pertaining to the modifications and new physical connections for both residential and nonresidential customers.


It added that the amendments aim to reconcile the same with other ERC-issued rules and regulations, including the Magna Carta for Residential Electricity Consumers, and address the request of the National Housing Authority (NHA) on the resettlement and socialized housing projects and programs of the government.


ERC has set an expository hearing (EH) on September 20, while the public hearing is set on September 29.


ERC said the proposed amendments include the clarification that when the installation or extension of lines are included in the ERC-approved capital expenditures (Capex) program of the distribution utilities (DU), the costs must be shouldered by the DU; and the exemption of relocation or resettlement projects of concerned agencies of the national and local governments from advancing the cost of lines and facilities, if the relocation site is deemed to be not commercially viable.


ERC added that the proposed amendments aim to grant nonresidential customers the option to advance the cost of lines and facilities subject to a refund by the DU, similar to that with residential customers; and to clarify that when other end-users connect to lines and facilities paid for by nonresidential customers, such become part of the DU’s network assets and the costs must be refunded by the DU under mutually agreed upon terms and conditions.


The DSOAR serves as the main charter for electricity DUs. The DSOAR sets the terms and conditions related to the provision of Connection Assets and Services; Supplier of Last Resort services to the contestable markets; redistributors’ service to sub-meter users; and the rules establishing the regulated service rates for the DUs.


“The electricity stakeholders are called upon to study closely and comment on the proposed amendments to [DSOAR]. The electric power industry is a dynamic environment. We seek updates and insights to ensure that ERC’s rules are responsive, robust and fair to all concerned,” Zenaida Cruz-Ducut, ERC chairman, said. (P. Isla)