ERC seeks public comments on wholesale power aggregation

By Neil Jerome C. Morales (The Philippine Star) Updated March 22, 2012 12:00 AM


MANILA, Philippines – The Energy Regulatory Commission (ERC) is seeking public comments for the planned wholesale aggregator scheme that will allow entities to pool electricity demand.


In a statement, ERC said it enjoins the public “to participate in the formulation of policy regarding the wholesale aggregation scheme considering the developments that have taken place in the electricity industry.”


“The comments that will be gathered will guide the ERC to the proper way forward of the wholesale aggregation scheme in the electric power industry,” said ERC chairperson Zenaida G. Cruz-Ducut.


A power aggregator is one that is engaged in consolidating the demands of power distribution utilities like Manila Electric Co. for the purpose of purchasing and reselling electricity on a group basis.


ERC said it promulgated and adopted the “Rules for the Registration of the Wholesale Aggregators” in 2006.


The rules allowed distribution utilities, especially small electric cooperatives, to obtain supply of power from the Wholesale Electricity Spot Market (WESM).


To date, there are 10 licensed wholesale aggregators in the country, with seven licensed also as retail electricity suppliers.


“The electricity industry has undergone several developments since the introduction of the wholesale aggregator scheme,” ERC said.


“One significant development was the Department of Energy’s issuance of Department Circular 2010-05-0006 in May 2010 that required the distribution utilities to become members of the WESM,” it added.


However, a large number of small distribution utilities, mostly electric cooperatives, do not qualify as direct WESM members, ERC said.


Hence, small distribution firms still encountered limited supply options.


Furthermore, the same department circular terminated the role of the National Power Corp. and the Power Sector Assets and Liabilities Management Corp. as the default wholesale suppliers to supply the electric power supply imbalances of customers in the WESM.


“This has further narrowed the supply option of some of the distribution utilities,” ERC said.


ERC added that some distribution utilities want an expanded role for wholesale aggregators in areas where WESM is not operational.


“Thus, the said wholesale aggregator scheme may already need certain changes to suit the needs of the electricity industry or may be discontinued,” ERC said.