ERC Resets Open Access Implementation

Manila Bulletin
By MYRNA M. VELASCO
October 26, 2011, 12:05am


MANILA, Philippines — The implementation of open access originally targeted by year-end will skid to a later timeframe, the Energy Regulatory Commission (ERC) has stated in its advisory to the media.


“The ERC resolved yesterday to defer the implementation of open access and retail competition, which was earlier scheduled to commence on December 26, 2011,” ERC executive director Francis Saturnino Juan has announced.


The Commission added that “a new timeline will be set after the ERC receives the recommendations of the steering committee created by the DoE (Department of Energy).”


Prior to the decision on the postponement of open access implementation, the ERC indicated that it already certified around 500 entities as prospective participants to the open access regime.


The role of the ERC, being the interim central registration authority (CRA), however is being questioned with some quarters inferring that the regulator must not be involved in such function for the sake of maintaining its independence.


In the DoE-led discussion on the Transitory Rules for Open Access issued by the ERC, it has been initially agreed that “the identification/designation of the CRA be referred to the JCPC (Joint Congressional Power Commission).”


Open access and retail competition is the era in the deregulated power industry which shall finally give consumers true-to-form choice when it comes to their preferred electricity suppliers. The initial threshold for participants will be for those with 1.0 megawatt of peak demand within a cycle set by the regulator.


Nevertheless, the energy department’s steering committee as well as the other players in the industry deemed that the sector may still not be ready for open access – given the lacking infrastructure yet for customer-switching (business-to-business or B2B system) as well as the absence of a designated agent on billings and settlements.


They have proposed that the deferment of open access shall be timed appropriately “based on the simulation of the time/period required to put in place the rules, regulations, infrastructure and such other necessary compliances prior to commencement.” The delay is seen stretched by another one to two years.


The steering committee, in particular, indicated that it will “formulate a clear Plan of Action for the designation of the CRA to include consistency with other issued ERC resolutions;” like the rules on customer switching.


For the B2B information technology-based infrastructure, it has been proposed that this be undertaken by a third party provider. The budgeting process and actual setting up of the system may still take some time though.