Government defers retail competition in power sector

Business Mirror
TUESDAY, 25 OCTOBER 2011 21:11 PAUL ANTHONY A. ISLA / REPORTER


THE Energy Regulatory Commission (ERC) must deal with a few setbacks before it can implement open access and retail competition in the power sector.


Open access, which allows consumers to choose their own electricity supplier, is scheduled to begin on December 26.


But lawyer Francis Saturnino Juan, ERC executive director, told reporters in a text message on Tuesday that the agency set a new schedule after receiving the recommendations of a steering committee created by the Department of Energy (DOE).


He said the needed information technology infrastructure is not yet in place and there are other issues that must be addressed.


“In short, not all the preparatory activities earlier identified have been undertaken,” Juan said. “We will wait for the DOE steering committee’s report before we set the timeline. There are preparations that still need to be done.


Energy Secretary Jose Rene Almendras earlier said open access and retail competition should be implemented while the power supply is sufficient and stable.


He said timing was key in making sure open access and retail competition would not cause power rates to rise further.


“It can happen next year, perhaps after summer. We have to wait for the technical working group’s recommendation,” he said.


Almendras said he does not want to make a recommendation without having a basis.


Almendras noted there were people claiming that a full-blown system is not necessary.


Open access will introduce competition in the retail-supply segment of the electric-power industry by allowing electricity end-users with an average monthly peak demand of one megawatt to choose their electricity-service supplier.


According to the Electric Power Industry Reform Act, the introduction of open access will be gradual, starting first with end-users with a 12-month average demand of one megawatt. After two years, the coverage shall be expanded to customers with a 750-kilowatt individual or aggregated demand.