Manila Bulletin
By Myrna M. Velasco
Published: April 13, 2013
An initial but major gridlock on supply sourcing has been impeding the introduction of open access and retail competition (OARC) in the deregulated power industry, the power industry regulator has acknowledged. This then prompted the Energy Regulatory Commission (ERC) to require distribution utilities (DUs) and retail electricity suppliers (RES) to submit all relevant data relating to their contracted capacities.
Under Resolution No. 05, series of 2013, the regulator has stipulated that “all DUs in the Luzon and Visayas grids shall submit to the ERC data pertaining to the amount of capacity and energy (in megawatt and megawatt hours) that they have contracted with the generators as well as the capacity and energy that they are intending to allocate for their captive market, their supply business segment as local RES or otherwise, and their SOLR (supplier of last resort) business segment.”
The retail electricity suppliers, on the other, were directed to furnish the ERC with their data on contracted capacity with generators, as well as on “the number of their contestable customers and the capacity and energy that they have allocated for such.”
The ERC has echoed the concerns raised by contestable customers relative to the implementation of industry open access, wherein the RES were reportedly not giving them proposals on supply procurement options.
Somehow, this is defeating the purpose of open access which was chiefly built upon goals of giving qualified end-users the right to choose their preferred electricity suppliers.
The ERC has emphasized that contestable customers “complained that several RES are not making any offers to them because these RES have already allocated their capacities and energy volumes to either their affiliate companies or other target customers.”
The regulator has averred that “these acts are prejudicial to the contestable customers as they may end up being served by supplier of last resort for failing to find a willing RES due to circumstances beyond their control.” SOLRs will generally be the DUs currently servicing them, hence, frustrating their attempts to patronize other suppliers.
Long before this dilemma surfaced, it was already a question from the media on whether or not there would be supply alternatives for contestable customers who are opting to take that shift on energy sourcing.
The government listed more than 900 entities intending to participate in the open access play of the industry. Contestable customers are those qualified within the one megawatt peak demand requirement, being the capacity threshold.
Trial runs are undergoing for OARC, but many problems have been cropping up, thus, prompting the industry regulator and policymakers to improve the rules and policies accordingly. source
Under Resolution No. 05, series of 2013, the regulator has stipulated that “all DUs in the Luzon and Visayas grids shall submit to the ERC data pertaining to the amount of capacity and energy (in megawatt and megawatt hours) that they have contracted with the generators as well as the capacity and energy that they are intending to allocate for their captive market, their supply business segment as local RES or otherwise, and their SOLR (supplier of last resort) business segment.”
The retail electricity suppliers, on the other, were directed to furnish the ERC with their data on contracted capacity with generators, as well as on “the number of their contestable customers and the capacity and energy that they have allocated for such.”
The ERC has echoed the concerns raised by contestable customers relative to the implementation of industry open access, wherein the RES were reportedly not giving them proposals on supply procurement options.
Somehow, this is defeating the purpose of open access which was chiefly built upon goals of giving qualified end-users the right to choose their preferred electricity suppliers.
The ERC has emphasized that contestable customers “complained that several RES are not making any offers to them because these RES have already allocated their capacities and energy volumes to either their affiliate companies or other target customers.”
The regulator has averred that “these acts are prejudicial to the contestable customers as they may end up being served by supplier of last resort for failing to find a willing RES due to circumstances beyond their control.” SOLRs will generally be the DUs currently servicing them, hence, frustrating their attempts to patronize other suppliers.
Long before this dilemma surfaced, it was already a question from the media on whether or not there would be supply alternatives for contestable customers who are opting to take that shift on energy sourcing.
The government listed more than 900 entities intending to participate in the open access play of the industry. Contestable customers are those qualified within the one megawatt peak demand requirement, being the capacity threshold.
Trial runs are undergoing for OARC, but many problems have been cropping up, thus, prompting the industry regulator and policymakers to improve the rules and policies accordingly. source
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