150-MW For Open Access Customers

APC Allocation

By MYRNA M. VELASCO

July 24, 2012, 5:27pm

MANILA, Philippines — Out of its total capacity, Aboitiz Power Corporation is initially allocating 150 megawatts to be offered to contestable customers under open access.

This was disclosed by AP president and chief executive officer Erramon I. Aboitiz in an interview, as he enthused that they will be using the “Aboitiz Power” brand as selling point to prospective customers.

“We are having at least 150 megawatts initially for open access. We are working on our billing and settlement processes,” he said.

The Aboitiz chief executive added that they are just waiting for the final pronouncement by the Department of Energy (DOE) as to when open access and retail competition will finally have its debut in the restructured

electricity industry.

The targeted kick-off of open access is October 26 this year, but given the remaining policy issues that have to resolved, stakeholders are anticipating that this might be moved to December or early part of next year.

The DOE will recommend the timeline for open access; while the Energy Regulatory Commission (ERC) sets the official start date of open access. The regulator will also determine the threshold level for open access participants.

The open access regime in the industry will push the market forward to full competition, and this is also seen as the ultimate signal to finally pull down electricity rates for consumers.

The energy department’s expectation will be an enlistment of at least 800 customers for open access; mainly the customers within the bracket of at least 1.0 megawatt of peak demand consumption.

That customer-usage threshold will eventually go down to 750 kilowatts, based on a timeframe that must be determined by the ERC.

What is being sorted out by the technical working group (TWG) fleshing out the policies for RCOA is whether or not to mandate the registration of all contestable customers with the Wholesale Electricity Spot Market.

Stakeholders are also proposing that the DoE must set a policy and recommend processes for accounts, billings and settlements that participants must adhere to. source