ERC crafts rules for advanced metering infrastructure

by Myrna Velasco June 5, 2016 (updated)

http://www.mb.com.ph/erc-crafts-rules-for-advanced-metering-infrastructure/

As a relevant preparation to the kick-off of mandatory retail competition and open access (RCOA) for the country’s grander ambition of smart grid systems, the Energy Regulatory Commission (ERC) has laid down the rules for the deployment of advanced metering infrastructure (AMI) by distribution utilities (DUS) and other authorized entities.

The ERC’s rule crafting had been based on the petition of the Visayan Electric Company, Inc. (VECO) which sought the establishment and adoption of rules on the rollout of AMI as smart revenue metering system. The ERC ruling on this petition then becomes the basis for the rules that will be institutionalized for the deployment of such smart meters by DUs.

“The use of smart revenue meters became imperative due to developments in the power industry, particularly the declaration of RCOA, the imminent development of a national smart grid, as well as the issuance of rules on prepaid metering,” VECO has pleaded in its regulatory filing.

Aside from VECO, the country’s biggest power distribution utility Manila Electric Company (Meralco) is similarly aggressive on AMI deployment – with its capital expenditure (capex) on a pilot venture already given go-signal by the ERC.

Meanwhile, VECO has reckoned that “implementing an AMI project will necessitate review of existing rules and regulations which were promulgated and made to apply to the traditional provision of electricity.”

In time, VECO noted that such set of rules will be rendered passé, hence, “there is a need to update the same to fully maximize the potentials of these new technologies.”

The AMI rules, as prescribed, shall “set the standards, rules and regulations to govern the use of these smart meters in the provision of AMI services to consumers.”

As envisioned, the AMI Rules shall “promote demand-side management and energy efficiency by providing tools/services that empower consumers to manage their consumption.”

Additionally, it shall enhance “operational efficiency of the distribution utility and the reliability of its network; to provide guidance in the implementation of the AMI, its related features, services and functionalities; and to establish standards for an AMI project, smart meters and other devices, communications platforms and software applications necessary to operationalize the system.”

Relative to the AMI Rules, it has been mandated that “consumers will be provided with consumption data and other analytics to manage and budget their necessary usage.”