DOE backs deferral of open access

Manila Times.net
Published : Tuesday, October 18, 2011 00:00
Written by : Euan Paulo C. Añonuevo, Reporter


THE Department of Energy (DOE) said it is willing to defer the implementation of open access and retail competition in the power sector.
Energy Secretary Jose Rene Almendras, however, said that any postponement should “not be too long” and should include a definite schedule for the establishment of required infrastructure.


“The Energy Regulatory Commission is currently listening to petitions [on] open access and the technical working group of government. We hope to finish by this month the actual evaluation on whether we could push through with open access this December,” Almendras said.


The Electric Power Industry Reform Act of 2001 mandates the establishment of an open access regime wherein power generators shall be allowed to market their output directly to qualified consumers.


The ERC earlier set December 26 as the start of open access after the government two key Epira conditions: the sale of at least 70 percent of state-owned National Power Corp.’s power plants, and the sale of a similar number of contracted output with third-party plant operators.


Distribution utilities however are suing for more time to develop the required systems for accounting, billing and settlement of transactions under open access.


Almendras said the decision lies solely with the regulator, which is hearing a petition for the deferment of open access.


Should open access be postponed, the availability of power supply should be considered so as not to impact on electricity rates, the DOE chief said.


“My view is, ideally there is a good time for open access is when your generation is not short so you do not cause prices to spike. It can happen next year, after summer,” he added.


Power supply usually is tight during the dry months because of high demand and the low operating levels of hydro facilities.